Systems for Managing Risks
Effective risk management allows us to achieve our business objectives, generate value for our stakeholders and provide the highest-quality biopharmaceutical products. We use consistent and effective processes for risk identification, monitoring and mitigation, and incident management related to employee and environmental protection, facilities and assets, products, compliance, reputation and communications.
Integration with existing business functions is key; the Bristol-Myers Squibb risk management approach does not exist separately from day-to-day operations. Risk management is an integral part of business performance, in addition to key processes such as strategic planning, brand planning, performance management, disclosure, and crisis management. Bristol-Myers Squibb uses an enterprise risk management approach that addresses the full spectrum of risks: industry-specific, compliance, legal, competitive, environmental, security, privacy, business continuity, strategic, financial, reporting, reputation and operational.
Our approach is a systematic and disciplined set of policies, processes and practices, as well as a structure, that enables ongoing identification, assessment, and prioritization of the major risks associated with the company’s key business objectives.
Our approach includes the development, implementation and monitoring of risk mitigation strategies as well as reporting of significant dollar risks with probabilities to management and our Board of Directors. The Senior Management Team receives a quarterly report on enterprise risks. The Audit
Committee discusses periodically with management the Company's policies and guidelines regarding risk assessment and risk management, as well as the Company's major financial risk exposures and steps management has taken to monitor and control such exposures.
Each facility has a written incident management plan, which includes appropriate systems for response and containment, notification, investigation, documentation, corrective action, monitoring, training, recordkeeping and self-assessments. The plan addresses major EHS incidents that involve or impact Bristol-Myers Squibb employees, facilities, operations or equipment, or that involve or impact third-party contractors engaged in activities on company property or whose activities off site have the potential to adversely impact significant Bristol-Myers Squibb assets or activities.
Implementing the Precautionary Principle
Doing business in a sustainable manner encourages innovative approaches to government regulation and is essential in developing and maintaining a competitive advantage in the marketplace. Bristol-Myers Squibb supports open markets and maintains that real economic growth is necessary for creating the capacity to meet environmental challenges. We recognize that the integrity of natural systems – land, water, air and biodiversity – is critical to both economic and environmental vitality.
Bristol-Myers Squibb takes a precautionary approach when there is potential harm to human health or the environment. For example, despite some disagreement in the scientific community at the time, regarding the impact of human activities on global warming, in the year 2000 the company established a 2010 goal to reduce our direct and indirect greenhouse gas emissions by 10 percent normalized by sales. In 2010, we announced further greenhouse gas emission reductions of 15%, absolute, are targeted in our Sustainability 2015 Goals, relative to our 2009 performance.