Too many food scandals, or alleged food scandals, have made Asian consumers highly sensitive about the food they consume. Whether you are a farmer, a brand owner or retailer, adverse publicity has a near immediate impact on revenue and a reputation issue that takes a long time and a lot of dollars to shake off.

Alongside that, despite rapid economic growth, over 500 million people in Asia are malnourished in some way (World Hunger, 2015). Whilst the growing urban middle class is consuming a richer diet, there are many more people still highly sensitive to fluctuations in cost and availability of basic food staples.

How do Lockton help?

We assist clients right through the food industry gain visibility through their supply chain, mitigate risks in their own and supplier operations and provide balance sheet protection through insurance solutions when things go wrong.

Visibility: we work with Risk Managers and Procurement to map out the supply chain, both direct and indirect suppliers, to identify potential bottlenecks and dependencies that could cause supply issues. Very often this work is Global to support clients’ worldwide sourcing arrangements.

Risk Mitigation: assessment of how physical risks such as fire, flood, security and employee safety are managed by food industry clients to ensure key risks are mitigated and that tried and tested business continuity plans are in place. Increasingly our work in this area is with our clients suppliers to ensure those suppliers maintain the same risk management standards.

Balance Sheet Protection: we use customised insurance solutions to protect client profits and those of their suppliers so that the financial consequence of any loss is mitigated. We apply the “3 C’s” of applying the most relevant COVER, ensuring CLAIMS are managed to a satisfactory resolution and COST is managed to ensure value for money.

 

Emerging Risks

The food industry risk profile is changing as intangible risks emerge as the consequence of physical supply failure. We have developed solutions to help clients manage:

  • Reputation harm as the result of a supply chain failure that has damaged brands and reduced revenues. Reputation harm through adverse media coverage can now be covered by insurance solutions.
  • Cyber attacks are becoming common place and Asia is particularly vulnerable. In the food industry this can include diversion of payments to suppliers, hacking of computerised production, theft of consumer data or disruption to online sales. We provide support when such breaches occur and insurance to meet the financial costs of such business disruption.

Contact Us

For more information contact Peter Jackson, Director MNC Asia.

 

Peter Jackson
Director MNC Asia
+66 (0) 2 635 5000 (Ext. 6800)
peter.jackson@asia.lockton.com

Or your local representative at Lockton Asia Offices.

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Discover more Insights & Publications
Read more in the Lockton Newsroom