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RiskUKSeptember2017

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Crisis Management: Leadership in Product Recall Events<br />

During times of stress, a plan to turn<br />

towards is a comfort. The assumption is<br />

that the plan is created with clear heads<br />

and the luxury of informed decision-making<br />

from all relevant parties. The purpose of a<br />

defined product recall plan is to guide action.<br />

However, companies often find their recall plan<br />

to be too general and amounting to little more<br />

than a sample product recall plan that could be<br />

applicable to any business.<br />

There’s no point in having a plan if it’s not<br />

specific and actionable. A safety recall can have<br />

dangerous consequences if not dealt with<br />

swiftly. Ensure that valuable time isn’t wasted<br />

by defining the recall process beyond common<br />

sense headings. Set specific points of action by<br />

product or type of recall. Pre-determine<br />

priorities and timescales and make<br />

accountability of tasks clear. List all external<br />

stakeholders and what they need to be told and<br />

include important external stakeholders in<br />

planning such that they understand their role.<br />

Once the recall procedure is defined, the<br />

comprehensiveness of the plan can then be<br />

tested by training your recall team against it.<br />

Managing risk can be an endless task. Part of<br />

the planning process typically includes an<br />

exploration and documentation of all possible<br />

failures in the design, process, product or<br />

service. A cross-functional team is necessary<br />

for this exploration to be successful.<br />

Risks are live and sneaky. The likelihood and<br />

potential impact of a risk may be set at the<br />

start of the project, but you must keep a live<br />

and dynamic view of risks, their related risks<br />

and the domino effect of changing<br />

circumstances. The people involved in the<br />

original risk assessment are not likely to be the<br />

same as those who will spot the critical change<br />

in circumstance so it’s important to make it<br />

easy for people to report their concerns.<br />

At various points, reassess risks with fresh<br />

eyes and record the risk score against the<br />

original. Remain alert to emerging risk.<br />

Continually think about likely causes of recall<br />

and focus training around high risk aspects of<br />

your operations. Regularly reassess and update<br />

your risk registers and take product recall into<br />

account in change control. Make it easy for<br />

people to report their concerns and use risk<br />

severity and likelihood to prioritise both<br />

mitigation actions and training.<br />

The recall team<br />

Training your product recall team against the<br />

recall plan not only validates its usefulness, but<br />

also helps everyone involved to act decisively<br />

when time is of the essence. A product recall<br />

should be a rare occurrence so staff shouldn’t<br />

Total Recall<br />

We can all agree that exploding or fire-prone mobile phones,<br />

potentially life-threatening vehicle airbags and poisoned or<br />

otherwise contaminated food are best avoided. However, it’s<br />

sometimes the case that products do malfunction. What the<br />

manufacturers involved do about such situations determines<br />

how they’ll be judged by consumers. Does your business<br />

have a product recall team primed for action? If not, there’s<br />

no time to spare. Jennifer Sillars outlines precisely why<br />

be expected to know what to do without<br />

training and support.<br />

A product recall team must be set up prior to<br />

the need for a recall. From the plan you will see<br />

the stakeholders who must be involved, their<br />

priorities, the interdependencies and timelines<br />

for action. If relevant personnel – including<br />

external parties – are aware of what’s expected<br />

of them there will be no crossed wires or<br />

avoidance of responsibility. All parties will be<br />

focused on what’s most important (ie<br />

minimising harm to consumers).<br />

Front line staff dealing with complaints are an<br />

important early warning indicator of problems.<br />

The processes that front line staff work to are<br />

far removed from those around product or<br />

service creation and maintenance. If front line<br />

staff have a good understanding of the product<br />

and the risks for which those closer to the<br />

product are on high alert, they could diagnose<br />

and escalate emerging issues before any real<br />

damage is done.<br />

Regardless of the link between front line and<br />

behind the scenes operations, logging of<br />

Jennifer Sillars:<br />

Product Marketing Executive<br />

at Ideagen<br />

27<br />

www.risk-uk.com

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