The biotech and pharmaceutical industries are no stranger to risk - organizing clinical trials for medications that may never reach the open market due to inefficiency can place a significant financial burden on companies. When it comes to managing them, identifying procedures can be essential to avoiding or minimizing the financial impact of risks.
The Economist Intelligence Unit conducted a survey of senior management executives in the pharmaceuticals and life sciences industry regarding risk in their respective companies. The 65 responses were combined with those of an earlier survey of 353 executives in a wider range of other industries. It mainly focused on North America, with 65 percent of respondents hailing from the region, but also included international areas such as Europe, Asia-Pacific, Africa and Latin America.
Management is C-Level
According to its findings, the EIU reported that the ultimate responsibility of risk management was falling on CEOs, CFOs, CROs and general counsel. The survey found that the senior executives could be doing a better job of defining the company's interest in risk, ensuring that information gets to the appropriate people for assessment.
Most Time Spent on Compliance
Following controls and monitoring, compliance takes up most of their time with risk management. However, this leaves managers and executives with less freedom to watch for emerging threats that could create financial hardships. As a result, companies are failing to spread risk awareness throughout their organizations.
Mismatch Between Barriers, Risk Processes
The results showed that two-thirds of respondents had no intention of recruiting a chief risk officer, with less than one-third saying their organization has one on staff already. While breaking down the risk management silo may have been beneficial, the lack of awareness diminishes an organization's ability to understand new risks.
The Benefit of Third-Party Training
According to the U.S. Food and Drug Administration, quality systems are becoming integral to the pharmaceutical industry. In turn, risk management is a valuable component of an effective quality system.
The biotech and pharmaceutical industries can greatly benefit from outsourcing their risk management training to third-party experts. Merit Career Development offers courses specific in project risk management for the biotechnology and pharmaceutical industries. For more information, click here.
The EIU study underscores the advantages that extra training can bring to risk management in the pharmaceutical industry. With a healthy roster of subject matter experts, Merit can help executives not only manage current threads but also look ahead to potential emerging risks.