Business and operational risks
|
|
Risk mitigation activities and initiatives |
| High degree of regulation and product
liability risk |
|
 |
Strict quality control at Group manufacturing levels |
|
Enhancement of facilities by capital investment when necessary |
|
Ongoing review of regulatory requirements |
|
Monitoring of developments and engaging with regulators regarding developments in
healthcare and pharmaceutical pricing regulations |
|
Appropriate product liability cover |
|
Compliance with relevant manufacturing standards |
|
Ongoing quality control and product training for staff |
|
Monitoring quality of procured products and services from approved suppliers |
|
| Physical protection of assets |
|
|
Annual insurance assessments |
|
Independent insurance assessor and advisor |
|
Assets insured at current replacement cost and operational risks covered |
|
Appropriate controls |
|
Planned maintenance |
|
| Information technology |
|
|
Ongoing assessments and upgrades |
|
Increasing IT capabilities to keep pace with growth in the business |
|
Integration of operational and business systems for maximum efficiency and control |
|
Disaster recovery programmes |
|
Strong IT security controls |
|
Implementation of world-class IT systems to support internationalisation of the
business |
|
| Exposure to foreign exchange fluctuations
and global interest rate movements |
|
|
Treasury policy reviewed and revised |
|
Increased natural hedging of imports and exports |
|
Increased diversification in trading currencies |
|
Hedging of risks actively pursued |
|
No speculative positions taken |
|
| Growth in offshore operations |
|
|
Appointment of key senior personnel |
|
Shift of business weighting from the public sector to the private sector |
|
New product introductions via licence agreements and acquisitions |
|
Awareness of and compliance with legislative changes |
|
Compliance with regulatory standards |
|
Targeting of differentiated products for developing world markets |
|
Leveraging off multinational relationships |
|
Implementing of effective global distribution system |
|
SHE (See detailed risks in the Sustainability Report.) |
|
| Reputation risk |
|
|
Strict confidentiality clause in all company agreements that contractually limits the
parties from divulging sensitive information |
|
Referral to the respective manager or executive of matters that could be a potential
legal or reputational risk |
|
Formal process for referral of enquiries from the media and investors to respective
managers |
|
SENS announcements and press releases where appropriate |
|
Dedicated customer service and healthcare practitioner help lines to monitor and
manage product complaints |
|
Executive commitment to good corporate governance and effective internal controls |
|
See “Reputation Management” for further details. |
|
