Risk management
Galenica has a risk management process in place that helps the relevant management of Group companies, the Corporate Executive Committee, and the Board of Directors to identify potential dangers in a timely manner and, where necessary, to take preventive action. Independent of legal requirements, the goal of this process is to identify and assess significant risks at all management levels and to manage them while making conscious use of the opportunities the process provides.
Definition of risk
_Galenica defines risk as the possibility that an event or an action will lead to immediate financial loss or other negative consequences.
Objectives
The Galenica risk management process defines three basic objectives:
_Creating a framework for effective risk management within the Galenica Group that will be embedded in existing management and planning processes and will therefore effectively strengthen risk awareness at all management levels.
_Creating and guaranteeing a lean and non-bureaucratic risk management system that will effectively protect the business sectors and their profit-earning ability.
_A credible presentation to stakeholders that Galenica is managing its risks effectively.
Monitoring and management
_Risk management at the level of the Galenica Group is concerned with strategic risks that could have significant consequences at Group level or at least at business sector level. Operational risk management is specifically defined and managed by the individual Group operating companies, although it is recognised that events in individual companies can clearly have an influence on strategic risks of the Group. Risks are managed at the appropriate level by the management hierarchy that is best suited for this purpose. This ensures that action will be taken in an efficient manner and that experience will be broadly reinforced within the Galenica Group.
_The systematic overview of the key risks enables the Board of Galenica to coordinate with the chosen strategy, prioritise risk, allocate resources and specify any action required. The Galenica Board of Directors receives an overview of risk assessment when circumstances require it, but at least once a year.
_Each management team should be familiar with the risks of the Group or its respective business sector, assess these and provide the Board of Directors with the information essential for assessing strategic risks. The management teams successfully implement any measures decided upon and are responsible for the efficient operation of the risk management process.
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