“ Due Diligence is a moving target” Corporate Assessment Food Processors & Handlers Date: July 09, 2009 www.argosrm.com

“ Due Diligence is a moving target”

Corporate Assessment

Food Processors & Handlers

Date: July 09, 2009

Due Diligence Challenges How does your company keep ahead of the due diligence curve? Is your company strategically organized to ensure due diligence? Are the proper checks and balances in place to demonstrate due diligence? Do 3 rd party audits provide you with sufficient data to assess due diligence gaps? Due Diligence “ Due diligence is the efforts made by an ordinarily prudent or reasonable party to avoid harm to another party”

Due Diligence Challenges

How does your company keep ahead of the due diligence curve?

Is your company strategically organized to ensure due diligence?

Are the proper checks and balances in place to demonstrate due diligence?

Do 3 rd party audits provide you with sufficient data to assess due diligence gaps?

“ Due diligence is a moving target” TM in food processing & handling as a a result of changes in regulations, best practices, technology and customers’ expectations Companies must adapt to increasingly more stringent government regulations & requirements Industry and competitors best practices cannot be ignored and must be factored into the due diligence equation Technological innovations allow for more robust testing for food borne pathogens Customers demand higher level of stringency for food safety programs Due Diligence Ever-Changing Landscape

“ Due diligence is a moving target” TM in food processing & handling as a a result of changes in regulations, best practices, technology and customers’ expectations

Companies must adapt to increasingly more stringent government regulations & requirements

Industry and competitors best practices cannot be ignored and must be factored into the due diligence equation

Technological innovations allow for more robust testing for food borne pathogens

Customers demand higher level of stringency for food safety programs

Identify those variables related to the demonstration of due diligence in food safety programs Establish a high level corporate cross-function team to review and monitor the ever-changing due diligence landscape (current state vs. future state) Ensure channels are in place for due diligence communication between corporate and operational entities (processing plants, suppliers, growers, distributors, restaurants) Conduct 3 rd party Due Diligence Assessments (DDA) Review DDA findings and develop improvement plans to close food safety program gaps Solution

Identify those variables related to the demonstration of due diligence in food safety programs

Establish a high level corporate cross-function team to review and monitor the ever-changing due diligence landscape (current state vs. future state)

Ensure channels are in place for due diligence communication between corporate and operational entities (processing plants, suppliers, growers, distributors, restaurants)

Conduct 3 rd party Due Diligence Assessments (DDA)

Review DDA findings and develop improvement plans to close food safety program gaps

Greater protection of brand integrity and equity Higher level of confidence in company’s food safety and quality programs Increase corporate transparency in overall food risk management Elevation in the level of preparedness for potential crises such as product recalls and foodborne illness outbreaks Reduction in liability claims Decrease potential for regulatory compliance issues Ability to better gauge the effectiveness of 3 rd party food safety audits Develop an organizational culture of due diligence accountability Benefits

Greater protection of brand integrity and equity

Higher level of confidence in company’s food safety and quality programs

Increase corporate transparency in overall food risk management

Elevation in the level of preparedness for potential crises such as product recalls and foodborne illness outbreaks

Reduction in liability claims

Decrease potential for regulatory compliance issues

Ability to better gauge the effectiveness of 3 rd party food safety audits

Develop an organizational culture of due diligence accountability

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