Managing risks
All organizations face a variety of internal and external risks at both strategic and operational levels, some of which may be beyond their immediate control. Each risk has a certain likelihood of occurrence and a greater or lesser impact, so for any particular risk there may be impacts on people, equipment/property, the environment, image and/or business. Novartis aims to systematically identify and assess these risks.
Novartis attempts to manage all 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 HSE risk performance management are risk portfolios and audits. Additionally, 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 elaborated annual local risk portfolios that are consolidated at Business Unit/Division level, and finally at Group level, into corporate HSE & BCM risk portfolios. They are presented to the Group Executive Committee (ECN) annually. In 2006, approximately one third of the risks reported in the previous year were declassified or reduced as a result of measures taken. Action plans for the remaining risks have been developed and are currently being implemented.
HSE audits
Beyond having a control function, Health, Safety and Environment (HSE) audits serve to provide consultancy and support to Novartis sites being audited. The sites develop action programs based on the audits, and their implementation is controlled by the Divisions and Business Units, and reviewed annually at corporate level.
Emergency
Management
In the Novartis Policy on Corporate Citizenship it is clearly stated that the health and safety of the employees, neighbors, customers, consumers and all others affected by Novartis’ business activities have priority in all its actions. To live up to this promise, even in the event of an emergency, Novartis has established the Novartis Emergency Management (NEM) system as a major element of its risk management strategy. NEM is a compulsory, uniform system that sets internal emergency reporting and decision-making structures and procedures in place throughout the whole Group.
To enhance preparedness, Novartis has developed a unique tool, the NEMplan, to support teams in dealing with emergencies, and to ensure adequate and efficient responses. NEM teams on all levels are asked to maintain their readiness and skills by the means of training and drills. As part of the overall global process, prepared NEMplans covering dedicated scenarios are made available to all the teams.
The NEM system ensures that Novartis is fully prepared for various emergency scenarios, and has the capability to further enhance sustainability through professional risk management.
Health, Safety and Environmental Performance 2007
Find out more about the Novartis Health, Safety and Environment Data 2007
HSE Reporting Principles
Find out more about our HSE reporting principles