Organisations that act quickly during a product recall often earn consumer trust and improve shareholder value, according to Marsh.
Head of Product Risk at Marsh's UK Risk Consulting Practice, Jeremy Moore, said there is a considerable amount of evidence that shows firms which have a very "clear and rehearsed" strategy around product recall tend to manage the crisis successfully.
Essential to any strategy is compliance with regulation, notifying regulators, withdrawing the product immediately and keeping consumers informed.
Moore said: “By working with a good risk manager to prepare for a product recall and apply best practice, companies can come through a recall intact, and sometimes even improve their reputation.”
