Risk and Crisis Management

Running head: RISK AND CRISIS MANAGEMENT 1
Risk and Crisis Management
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Risk and Crisis Management

RISK AND CRISIS MANAGEMENT 2
In April 2012, an Australian supreme court ruled that KFC was guilty of supplying a Twister
wrap that resulted in Salmonella poisoning. The case involved a young girl, Monika Samaan, who
suffered brain damage and is currently on a wheel chair after suffering from Salmonella Encephalopathy.
The court granted damages worth AUS $8 million to the plaintiff. Here is a look at some basic elements
of risk and crisis management with respect to the case against Kentucky Fried Chicken.
Risk Type and Level of Risk to the Business
The risk type in this case was contamination and poisoning of ingredients and end products. Food
poisoning occurs when a person consumes contaminated food. Podolak et.al, observed that cross
contamination takes place when food is stored, handled, or prepared incorrectly (2010). It arises when
some specific types of bacteria and their toxins come in contact with the food you consume. These types
of bacteria, also called pathogens include Salmonella, E.coli, and Campylobacter.
The level of risk to the business can be assessed by determining how food poisoning occurs, high
risk foods, high risk groups, and the factors that contribute to bacterial growth. Some of the foods with a
high risk of cross contamination are meat, dairy products, prepared salads, sea food, and ready to eat
foods. Those who stand a high chance of suffering from food poisoning are young children, expectant
women, and the elderly. The factors that contribute to bacterial growth include pH, water, temperature,
time, and nutrients. In this case, Salmonella was highly facilitated by nutrients. High risk foods like dairy,
egg products, sea food, meat, and poultry contain enough nutrients to support the growth of bacteria.
How the Company Handled the Risk
To begin with the risk in this case was cross contamination. Cross contamination refers to the
way pathogens that result in food poisoning can spread if you have not separated raw poultry or meat

RISK AND CRISIS MANAGEMENT 3
from other groceries (Carrasco, et.al, 2012). It also occurs when food is stored incorrectly or when ready
made food is mixed with raw foods.
In this particular case, it was likely that there was cross contamination of the chicken pieces after
cooking when the chicken was mixed up with flour or some form of dipping material used to prepare the
raw chicken. KFC handled the risk by its food safety system which includes:
 Employee health
 Employee hygiene
 Product and ingredient temperature management
 Product handling
 Preventing cross contamination
Where the company could have handled the situation better
There are several ways KFC could have handled the situation better. These include:
 Having a clear-cut system of separating cooked foods from contaminants
 Having regular inspections focused on identifying the risk of cross contamination
 Having a backup emergency protocol in case a client suffered from cross contamination or any
form of food poisoning
How the company could have adjusted their crisis response plan
A crisis can hit an organization at any time and this is why it is important for any viable business
to have a crisis response plan (Sapriel 2003). If KFC’s crisis response plan had anticipated the incidence