FACTORS AFFECTING VULNERABILITY TO CONTAMINATION

May 8, 2006

Factors affecting a company’s vulnerability to accidental or deliberate contamination fall into several categories. Some of these categories are certainly more controllable and lend themselves to internal procedures to minimize the exposure. Others may be largely outside a company’s direct control:

o Company profile — Higher profile and visibility equates to a higher exposure.

o Type of products — Products aimed at children and those with little protective packaging (fresh fruits, vegetables, meats) make for attractive targets.

o Packaging — A well protected product may lessen the exposure to a deliberate contamination simply because it is more difficult to tamper.

o Labor relations — Facility closings, downsizings and layoffs, union and employee relations may contribute to a company’s vulnerability.

o Geographic exposures — How widely and to where products are distributed.

o Quality control procedures — The most obvious and regulated factor to minimize and detect a potential contamination.

o Product shelf life — What is the amount of product in the stream of commerce and what inventory is available to replace any recalled products?

o Product coding — Smaller lot size, as well as forward and backward traceability will affect the scope and size of a recall.

o History — Copycat incidents, as well as effectiveness of past recalls.

o Extremists — Sensitive products, company political or country affiliation.

o Preparedness — How well is the company prepared to respond to the recall and minimize brand damage?