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Risk Management, Incident Response, Product Recalls JOHN CARTER FOOD SURE SUMMIT CONFERENCE, AMSTERDAM, MAY 2019

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Page 1: Risk Management, Incident Response, Product Recalls...Real-time incident response and recall decision making: a Fishy story. JC May 2019. FOOD SURE SUMMIT. CRISIS MANAGEMENT IN A WORLD

Risk Management, Incident Response, Product Recalls

JOHN CARTER

FOOD SURE SUMMIT CONFERENCE, AMSTERDAM, MAY 2019

Page 2: Risk Management, Incident Response, Product Recalls...Real-time incident response and recall decision making: a Fishy story. JC May 2019. FOOD SURE SUMMIT. CRISIS MANAGEMENT IN A WORLD

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POWERPOINT_MASTER_MCC_HQ.POT

Remember 1999?• 50 litres of Transformer oil (containing PCBs and Dioxin)

• Cost Belgium close to $1billion (and brought down the government)

• Demonstrated the connectedness of the agri-food industry

• Led (partly) to the creation of EFSA

Page 3: Risk Management, Incident Response, Product Recalls...Real-time incident response and recall decision making: a Fishy story. JC May 2019. FOOD SURE SUMMIT. CRISIS MANAGEMENT IN A WORLD

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POWERPOINT_MASTER_MCC_HQ.POT

Remember 2013?• The Horsemeat scandal demonstrated (again) the connectedness of the agri-food industry

• Led to the Elliott Review (UK) and formal inclusion of Food Fraud into the GFSI Guidance Document

Page 4: Risk Management, Incident Response, Product Recalls...Real-time incident response and recall decision making: a Fishy story. JC May 2019. FOOD SURE SUMMIT. CRISIS MANAGEMENT IN A WORLD

JC May 2019FOOD SURE SUMMIT

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RISK MANAGEMENT, INCIDENT RESPONSE, PRODUCT RECALLS

A PERSONAL PERSPECTIVE

1. Emerging risks: horizon scanning and preparation

2. Risk management: organisational structure, planning and readiness training

3. Real-time incident response and recall decision making

4. Future watching and trends: Crisis management in a world of Big Data and

Social Media

Page 5: Risk Management, Incident Response, Product Recalls...Real-time incident response and recall decision making: a Fishy story. JC May 2019. FOOD SURE SUMMIT. CRISIS MANAGEMENT IN A WORLD

21 May, 2019FOOD SURE SUMMIT

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JOHN CARTERCAREER SUMMARY

Page 6: Risk Management, Incident Response, Product Recalls...Real-time incident response and recall decision making: a Fishy story. JC May 2019. FOOD SURE SUMMIT. CRISIS MANAGEMENT IN A WORLD

21 May, 2019

6RISK MANAGEMENT, INCIDENT RESPONSE, PRODUCT RECALLS

EMERGING RISKS: HORIZON SCANNING AND PREPARATION

Page 7: Risk Management, Incident Response, Product Recalls...Real-time incident response and recall decision making: a Fishy story. JC May 2019. FOOD SURE SUMMIT. CRISIS MANAGEMENT IN A WORLD

21 May, 2019FOOD SURE SUMMIT

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EMERGING RISKS: HORIZON SCANNING AND PREPARATION

Is this an emerging

risk?

Does it exist here?

How can we mitigate

the risk?

Is the mitigation effective?

Risk Assessment Risk Mitigation

Normal Operations

ScienceMedia

RegulationMonitoring

Are we concerned through our Raw materials / Finished products /

manufacturing process…?What is the impact?

• Data collection or generation• Data results assessment• FS assessment• Portfolio impact assessment• …

• Supplier action plan• Material spec

modification• Recipe reformulation• Process modification• …

• SP results• …

What is the risk? What is at stake?

• Health concern• Regulatory

compliance• Reputation• Urgency (media,

authorities, …)

Budget, resources & tools*+

Decision making processare requested in order to properly assess

and mitigate risks

Page 8: Risk Management, Incident Response, Product Recalls...Real-time incident response and recall decision making: a Fishy story. JC May 2019. FOOD SURE SUMMIT. CRISIS MANAGEMENT IN A WORLD

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– prioritise risks

PEOPLE PRODUCT/BRAND

FINANCE

OPERATIONSREPUTATION ASSETS

HIGH

Risk Impact

LOWRisk Likelihood HIGH

Preventive Risk Assessment

– categorise risks

RISK MANAGEMENT, INCIDENT RESPONSE, PRODUCT RECALLS

Page 9: Risk Management, Incident Response, Product Recalls...Real-time incident response and recall decision making: a Fishy story. JC May 2019. FOOD SURE SUMMIT. CRISIS MANAGEMENT IN A WORLD

21 May, 2019

9RISK MANAGEMENT, INCIDENT RESPONSE, PRODUCT RECALLS

FOOD SURE SUMMIT - RISK MANAGEMENT: ORGANISATIONAL STRUCTURE, PLANNING AND TRAININGT

Management Responses to Risk:

• Tolerate represents the “do nothing” response because the impact is negligible, or is too expensive or too impractical to take proportionate counter measures.

• Transfer involves putting the risk with a 3rd party usually through insurance or contract.

• Treat involves action to reduce the likelihood and/or impact of the risk.

• Terminate requires complete avoidance or removal of the risk. This is often impossible or too expensive to do.

Page 10: Risk Management, Incident Response, Product Recalls...Real-time incident response and recall decision making: a Fishy story. JC May 2019. FOOD SURE SUMMIT. CRISIS MANAGEMENT IN A WORLD

21 May, 2019

10RISK MANAGEMENT, INCIDENT RESPONSE, PRODUCT RECALLS

REAL-TIME INCIDENT RESPONSE AND RECALL DECISION MAKING

• Put People First - the health and safety of all is paramount

• Urgency - treat all potential incidents with appropriate seriousness and speed of response and resources

• Management - direct from highest appropriate level, resolve at lowest appropriate level

• Communication - immediate and positive control of all internal/external communication

• Teamwork - use all available expertise and apply learnings

• Confidentiality - treat all information relating to an incident as confidential

FOOD SURE SUMMIT - RISK MANAGEMENT: ORGANISATIONAL STRUCTURE, PLANNING AND TRAININGT

Page 11: Risk Management, Incident Response, Product Recalls...Real-time incident response and recall decision making: a Fishy story. JC May 2019. FOOD SURE SUMMIT. CRISIS MANAGEMENT IN A WORLD

21 May, 2019

11RISK MANAGEMENT, INCIDENT RESPONSE, PRODUCT RECALLS

REAL-TIME INCIDENT RESPONSE AND RECALL DECISION MAKING: PRIORITIES

FOOD SURE SUMMIT - RISK MANAGEMENT: ORGANISATIONAL STRUCTURE, PLANNING AND TRAININGT

• Put people first - Safeguard the health and safety of consumers,

employees and the general public

• Comply with all relevant regulatory and legal requirements

• Protect the integrity of the Company’s reputation

• Protect the integrity of the Company’s products and brand reputation

• Safeguard the Company’s tangible and intangible assets and property

• Maintain business continuity

Page 12: Risk Management, Incident Response, Product Recalls...Real-time incident response and recall decision making: a Fishy story. JC May 2019. FOOD SURE SUMMIT. CRISIS MANAGEMENT IN A WORLD

21 May, 2019

12REAL-TIME INCIDENT RESPONSE AND RECALL DECISION MAKING

FOOD SURE SUMMIT - RISK MANAGEMENT: ORGANISATIONAL STRUCTURE, PLANNING AND TRAININGT

Walk

ing

the lin

e...

Page 13: Risk Management, Incident Response, Product Recalls...Real-time incident response and recall decision making: a Fishy story. JC May 2019. FOOD SURE SUMMIT. CRISIS MANAGEMENT IN A WORLD

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All product blocked as a precaution

Incident Management Team posted

Recall initiated

Support materials prepared• External Risk Assessment• Q&As

Confirmatory analysis initiated

Several meetings with authorities, including high level Corporate QA

Bottom line...No consumer illnesses

Due Diligence Test result: Problem

Local own brand (raw milk) cheese product

Real-time incident response and recall decision making: case study

Page 14: Risk Management, Incident Response, Product Recalls...Real-time incident response and recall decision making: a Fishy story. JC May 2019. FOOD SURE SUMMIT. CRISIS MANAGEMENT IN A WORLD

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Gort’s Gouda Raw Cheese Outbreak

Sickens 21 with E. Coli, One Dead

By News Desk | September 24, 2013

At least 21 people have now fallen ill with E. coli O157:H7 after

eating raw cheese products made by Gort’s Gouda Cheese

Farm in Salmon Arm, B.C.

One elderly victim died in August, while others developed

symptoms between late July and September.

Symptoms of E. coli infection include diarrhea, vomiting, and

stomach cramps lasting five to ten days. Severe infections can

result in the patient developing hemolytic uremic syndrome

(HUS), a life-threatening kidney disease.

Food Safety News

Walk

ing

the lin

e...

Livestock sanitary

status

Milk stage Cheese

processing

Storage and

transport

▪ Main RISK:

Contamination

▪ Sanitary status

and follow up r -

contagious

disease

▪ cleanliness and

sanitary state of

livestock,

breeding

buildings and

environment

▪ Main RISK:

Contamination

▪ Milk machine

maintenance and

cleaning

▪ Milking parlour

cleanliness and

maintenance

▪ Water

microbiological

status

▪ teat cleaning

process

▪ Main RISK :

Growth

▪ Cold chain

▪ Cooling tank

maintenance

and

cleaneliness

▪ …

▪ Main RISK:

Growth and

contamination

▪ Process

parameters

followed :pH..°

Page 15: Risk Management, Incident Response, Product Recalls...Real-time incident response and recall decision making: a Fishy story. JC May 2019. FOOD SURE SUMMIT. CRISIS MANAGEMENT IN A WORLD

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Authority test Bottom line...No consumer illnesses

Customers contacted

Public Recall conducted

Real-time incident response and recall decision making: a Fishy story

Page 16: Risk Management, Incident Response, Product Recalls...Real-time incident response and recall decision making: a Fishy story. JC May 2019. FOOD SURE SUMMIT. CRISIS MANAGEMENT IN A WORLD

JC May 2019FOOD SURE SUMMIT

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CRISIS MANAGEMENT IN A WORLD OF BIG DATA AND SOCIAL MEDIAIMPACT OF INNOVATION ON QUALITY AND FOOD SAFETY

Industry 4.0 and the Internet of Things

Social Media: real-time consumer

conversations

Whole Genome Sequencing – the

revolution in analytical capability

Page 17: Risk Management, Incident Response, Product Recalls...Real-time incident response and recall decision making: a Fishy story. JC May 2019. FOOD SURE SUMMIT. CRISIS MANAGEMENT IN A WORLD

JC May 2019FOOD SURE SUMMIT

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AFTER TEN YEARS OF SOCIAL MEDIA INTERACTING WITH FOOD SAFETY

Consumers want to

have a voice and

share information –

creating valuable data

News Media

• More sensitised and aware of food

safety than ever

Public Health Agencies

• Faster and more accurate outbreak

identification and response

Industry

• Benchmarking, issue detection and

prevention, and Consumer Care

CRISIS MANAGEMENT IN A WORLD OF BIG DATA AND SOCIAL MEDIA

Page 18: Risk Management, Incident Response, Product Recalls...Real-time incident response and recall decision making: a Fishy story. JC May 2019. FOOD SURE SUMMIT. CRISIS MANAGEMENT IN A WORLD

JC May 2019FOOD SURE SUMMIT

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EXTERNAL CONTEXTFUTURE WATCHING AND TRENDS: CRISIS MANAGEMENT IN A WORLD OF BIG DATA AND SOCIAL MEDIA

Page 19: Risk Management, Incident Response, Product Recalls...Real-time incident response and recall decision making: a Fishy story. JC May 2019. FOOD SURE SUMMIT. CRISIS MANAGEMENT IN A WORLD

JC May 2019FOOD SURE SUMMIT

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RISK MANAGEMENT, INCIDENT RESPONSE, PRODUCT RECALLS

A PERSONAL PERSPECTIVE – SO WHAT’S NEXT?

Organic?

Pla

nt

Bas

ed?

PALM OIL?

Isoflavones?

Plastics?

Biodiversity?

WATER?

Social Media Boycott?

Chlorates?

BREXIT?

Botanicals?

Page 20: Risk Management, Incident Response, Product Recalls...Real-time incident response and recall decision making: a Fishy story. JC May 2019. FOOD SURE SUMMIT. CRISIS MANAGEMENT IN A WORLD

JC May 2019FOOD SURE SUMMIT

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RISK MANAGEMENT, INCIDENT RESPONSE, PRODUCT RECALLS

REMEMBER 1999? REMEMBER 2013?

1. There are similarities – the complexity, the connections, the politics

2. There are differences – the transparency, the speed, the unpredictability

3. We need the same skills to enable swift and wise decision making

4. We need new skills in a world of Big Data and Social Media

5. A paradigm shift in Risk Assessment will require commitment to resources,

collaboration and political will…

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Merci et Au Revoir!