FRONTLINE

Secured Lender, The, Sep/Oct 2006 by Cove, Brian P

5. Sales may decrease as customers' sales decline.

6. Transport systems would be disrupted.

Lawsuits centered on working conditions (employees getting sick at work, failure to meet OSHA or SarbanesOxley requirements, failure to prepare, failure to fulfill contracts, etc.) may result.

What can companies do to prepare?

Certified management consultant Ken Wilson, Wilson Marketing Group, urges companies to develop a Business Pandemic Preparedness and Recovery Plan based on the CDC's worst case scenario with trigger points for a mild or moderate event. Use the World Health Organization's (WHO) Pandemic Alert Level as a trigger for your plan (www.pandemicflu.gov). Disaster Recovery or Business Continuity Plans focus on short-term impact to physical assets - plants and equipment - a pandemic flu targets human resources.

An effective Plan includes:

1. The formation of a pandemic crisis manager and teams.

2. Communications plan.

3. Health education plan: A comprehensive employee wellness and illness prevention program is vital for minimizing the transmission within your company.

4. Essential function/service plan: Identify the skeleton operations needed during the pandemic. Develop procedures to systematically reduce or shut down operations not vital to the core functions. Be sure to address your supply chain and key/critical suppliers.

5. Recovery plan: Guided by your essential services plan, systematically resume operations in reverse order based on your capabilities and the needs of your customers.

6. Test your plan and train company personnel in its use.

This strategy is designed to minimize the disruption to your business and to give you a competitive advantage over those who failed to plan, according to Mr. Wilson, who may be reached at k\vwilson@wmg-mn.com.

Accounts receivable index falls slightly in second quarter

The Kaulkin Ginsberg Index (KGI), the leading indicator of economic conditions affecting the accounts receivable management (ARM) industry, decreased 1 percent from its record high to 1458.6. The index's movement can be attributed to a slight decrease in the national unemployment rate and a slight reduction in the total market capitalization of public ARM companies. The KGI remains up 14.8 percent year over year.

"With the exception of some volatility in the public markets, the Index performed well across the board, keeping the KGl close to its historical high," said Paul Legrady, Director of Kaulkin Ginsberg's Research Group. "This suggests that the ARM industry as a whole continues to enjoy favorable economic conditions."

The Index's changes in May were caused by the following factors:

UNCITRAL approves recommendations of Working Group charged with drafting Legislative Guide on secured Transactions

The full United Nations Commission on International Trade Law (UNClTRAL) met recently at UN Headquarters in New York to review the work of its various working groups. At the meeting, the Commission reviewed the work of UNCITRAL Working Group VI, which has been developing a Legislative Guide on secured Transactions.