Managing Risk through Certification

1. Managing Risk through Certification IFST Western Brand - Food Auditing Conference 2012

2. Managing Risk through Certification • What is Risk? • Guaranteeing food quality and safety from farm to fork • Communicating Commitment through Certification • Management System Certification • Understanding the Standards – which standards • ‘Wonderful World of Food Safety Certification’ - video presentation

3. What is Risk? • Risk: • A situation or exposure to danger or loss • Risk is inherent to all human activities both personal and professional • Risk Management: • The process of identification, analysis, assessment, control, avoidance, minimisation or elimination of unacceptable risks • Ultimate risks to food industry • Harm to the consumer • Public recall • Loss of/damage to brand reputation

4. Headliners • No food company wants to be head lining in the news papers or the food press……

5. Headliners – more and more

6. Our Own worst Enemy! • Unfortunately, as an industry there is always the next story in the press • Melamine • Cucumbers • Peanut Butter • Beef • Attention of the Press….. • This is always an occupational hazard • Consumers are now the most educated they have even been and their expectations are (rightly) high • Globalisation of the food and beverage industry is a fact! • Consumer want to know that what they eat and drink is not only wholesome but above all is safe

7. Food Safety • However from the consumers point of view, food safety is a fact and shouldn’t be of concern to them • How many people walk around the supermarket picking up products and tying to guess ‘is this product safe?’ • Not many! • Food safety today is not a competitive advantage but a minimum expectation!

8. Food Consumers • However still today the consumer is very trusting • Consumers rely on the food manufacturers and retailers to ensure their food is safe • The consumer is not going to stand at the checkout in the supermarket and look for a GFSI food safety scheme ‘badge’ or logo • Its up to the food manufacturers to ensure that their systems are in order • It’s the retailers who are going to ensure that food manufactures reach the required standard – and can demonstrate this • Supported by legislation which ensures that food is manufactured to meet minimum food safety and quality requirements

9. Food Safety – A question of trust? • Companies can earn trust • Demonstrate diligence and vigilance • Demonstrate effectiveness and rigorousness of their systems • Implement systems such as HACCP, food safety management systems (and all that entails – internal audits, document control, etc) • It is the certification, by a third party which can help the company to demonstrate the effectiveness • Certification to a recognised standard, national or international ensures implementation of best practices and communicates this to the market

10. Communicating Commitment through Certification • Adoption and implementation of a food safety scheme is usually pushed by a customer • However it can also be seen as a strategic move of a company now and for the future • Certification of systems gives a clear message of the commitment of the organisation to upholding vital standards and addressing consumer concerns

11. Managing Risk through Certification • What does this mean? • Ensuring that firstly you pick the right standard for you • Ensuring that you spend the time developing the systems needed to show compliance against the requirements of the standard • Picking the right certification body and auditor • Working in partnership with certification body • Do you want to collect the badge • Are you looking to use certification as an improvement tool

12. Recognised Food Safety Schemes

13. Picking the Right Standard • Review all the available standards • Review the level of prescriptiveness that supports your business • All standards have ‘shall’ statements some are more black and white than others • Ensure that the food safety standard fits your internal standard and not the other way around • When you visit some sites they show you the BRC Manual, it shouldn’t be BRC’s it should be the sites!

14. The path to Risk Based Certification™ Building a path towards business improvement and sustainable growth plan. 4. Building the improvement path Challenging audits which examines all relevant data can help meet business goals. The certification process shall focus on your process, the food safety characteristics of your product and challenge your internal systems 3. Increaseconfidence Where are your primary needs? What is the reason behind? Who will this make an impact on? What is important to you? Build your Food Safety Management System around your needs and those of your customer. 2. Certification Process 1. Focus on your priorities Time

15. Choice of Certification Partners • Interview your certification body • Discuss your significant food safety issues to ensure that they understand your risks, where you business fits into the supply chain • Ensure that they have the right resources • Ask to see the qualifications and experience of the auditor(s) they plan to assign to your audit • Establish if the certification body offers any ‘value added’ services within the certification activity • Focus areas • Identification of strengths and weaknesses Allowing the organisation focus their improvement efforts

16. The Wonderful world of food safety certification • GFSI February 2012, DNV hosted a breakfast panel discussion with representatives from: • Heinz • Kraft Foods • US Foods • Coca Cola • Cargill • Graham Packaging • Panel were asked how certification had helped manage risk in their businessws

18. Messages from the Video • Certification saw a reduction in recalls but increase in holds • Companies were allowed to choose the scheme which best met their needs • Certification to a food safety standard, drives improvement, increase in business commitment is needed which is a positive development • Confidence that in the event of an emergency systems are in place

19. Questions?