Systems for managing risks
Effective risk management allows Bristol Myers Squibb 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. Our 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 including:
- Strategic planning
- Brand planning
- Performance management
- Crisis management
Bristol Myers Squibb uses an enterprise risk management approach that addresses the full spectrum of risks:
- Business continuity
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 our key business objectives.
Our approach includes developing, implementing and monitoring risk mitigation strategies in addition to reporting significant financial risks with probabilities to our management team and Board of Directors. The Senior Management Team receives a quarterly report on enterprise risks. Our Audit Committee periodically discusses with management company policies and guidelines regarding risk assessment and management, as well as major financial risk exposures and steps they have taken to monitor and control them.
Each of our facilities has a written incident management plan, which includes appropriate systems for:
- Response and containment
- Corrective action
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 way is essential in developing and maintaining a competitive advantage in the marketplace, and encourages innovative approaches to government regulation. We support open markets and maintain that real economic growth is necessary for creating the capacity to meet environmental challenges. We recognize that the integrity of natural systems — our 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, we established a 10-year goal in 2000 to reduce our direct and indirect greenhouse gas emissions by 10 percent (normalized by sales). In 2010, we targeted additional greenhouse gas emission reductions of 15% (absolute) as part of our Sustainability 2015 Goals, relative to our 2009 performance, and we are now pursuing a further 5% reduction (absolute) versus 2015 performance in support of our Sustainability 2020 Goals.