While highlighting the gravity of the avian flu pandemic and challenges for the financial system, I would also dwell briefly on our preparedness for the avian flu epidemic. I. Gravity of the avian flu pandemic  The outbreak of any contagious pandemic on a large scale has always had significant economic impact on the affected economies.
The outbreak of SARS in 2003 proved that even a disease with a relatively small health impact can have adverse economic implications. The severity of a pandemic can be seen from a historical perspective.