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For most people, going to a restaurant ends with a sense of satisfaction and enjoyment, not sickness and the possibility of death. This is also true when purchasing products at a local grocery store. However, recent events have cast doubt on the safety of America’s food supply. The issue facing risk managers is how to reduce these escalating risks and manage any unfortunate outcomes. The cost of food contamination can be devastating to a business financially, and can result in both direct losses related to product recall expenses and indirect losses such as lost reputation and goodwill. By reducing the frequency and severity of such risks and using proper risk transfer techniques, risk managers can help prevent catastrophic losses from contaminated food, and ensure the long-term viability of their company's brands.
© 2008 CPCU Society
Vol. 61 No. 4, April 2008
Finn, Zachary S.; Anderson, Timothy; and Lund, Donald, "Spoiled Brands: Protecting Your Company's Goodwill and Assets from Food Contamination Claims" (2008). Scholarship and Professional Work - Business. 102.