All organizations face a variety of internal and external risks in strategy and operations, some of which may be beyond their immediate control. Each risk has a certain chance of occurrence and a greater or lesser impact, so for any particular risk there are possible impacts on people, equipment/property, the environment, reputation and/or business.

Novartis aims to systematically identify and assess these risks. Our goal is to manage all known risks proactively by implementing appropriate preventive and contingency measures. This risk management process is designed to reduce the residual risk of an event - in terms of its likelihood of occurrence and the severity of its consequences - to an acceptable level.

The two most important tools for Health, Safety and Environment (HSE) risk performance management are risk portfolios and audits. In addition, for business-related risks, a Business Continuity Management (BCM) process is implemented as an integral part of the Novartis risk management framework.

Risk portfolios

The HSE & BCM risk portfolios are based on a bottom-up approach. Since 1997, Novartis sites have developed annual local risk portfolios that are consolidated at Division/Business Unit level, and finally at Group level, into corporate HSE & BCM risk portfolios. They are presented to the Executive Committee of Novartis annually. We are making good progress, steadily reducing a significant number of risks to an acceptable level. Action plans for the remaining risks have been developed and are currently being implemented.

HSE audits

HSE audits provide consultancy and support to Novartis sites that are audited. The sites develop action programs based on the audits, and their implementation is reviewed at various levels within the organization, including an annual review at the corporate level.

Learn more about our commitment to managing risks on our corporate citizenship website