Enterprise Risk Management Report: GlaxoSmithKline Case Study Analysis

This report provides a detailed analysis of the Enterprise Risk Management (ERM) practices of GlaxoSmithKline (GSK), a multinational pharmaceutical company. The introduction defines ERM and its importance in minimizing business risks. The main body explores GSK's aims, risk thresholds, and risk register. The organization's aims revolve around innovation, trust, and performance in healthcare, with a focus on patient well-being and ethical practices. Risk thresholds are examined as essential tools for measuring the level of uncertainty and impact that stakeholders may have interest. The risk register details various risks faced by GSK, including competition, supply chain disruptions, technological advancements, legal liabilities, and physical-chemical hazards. The report includes risk descriptions, existing controls, likelihood and impact assessments, and proposed mitigation strategies. The analysis highlights how GSK uses these tools to manage its operations, protect its data, and plan strategies to achieve its objectives in a complex external environment, which includes health-related risks, physical chemical risks, risk of organic synthesis, competition risk, supply chain risk, technology risk and legal liability risk.

Enterprise Risk
Management

Table of Contents
INTRODUCTION...........................................................................................................................1
MAIN BODY..................................................................................................................................1
Aims of organisation....................................................................................................................1
Risk Thresholds...........................................................................................................................2
Risk register.................................................................................................................................3
CONCLUSION..............................................................................................................................11
REFERENCES..............................................................................................................................13

INTRODUCTION
Enterprise risk management is mentioned to process connected with planning, organising,
leading along with controlling activities of entity for minimising risk effects within business's
capital addition to earning. It basically involves financial, operational, strategic and many more
types of risks that are connected to accidental losses (Banerjee, 2016). There are various methods
along with procedures that are opted by managers so that they can effectively manage risks
together with seize opportunities that are concerned with objective achievement. To establish
effective enterprise risk management framework, organisations works in setting common
language around all risks, a committee is steer to manage risk, roles and responsibilities are
assigned, ERM methodology is develop, framing risk appetite statement, identification of risks,
risk prioritization, risk mitigation plans, risk monitoring as well as reporting activities are
performed in systematic manner. It is generally risk based approach which helps in managing
organisation, protecting data and planning strategies. It in also an innovation within which
practices are geared to managing flourishing requirements of huge stakeholders as well as
ensuring proper management. The report is based on GlaxoSmithKline that is multinational
pharmaceutical company whose headquarters are established at Brentford, London. The report
includes information about aims of entity, risk thresh holds and risk register.
MAIN BODY
Aims of organisation
GlaxoSmithKline is a leading pharmaceutical entity that operates its functions in different
locatiosn of world. It has headquarters located in the city of Brentford, London. The goal of
GlaxoSmithKline is to become world's most innovative, trusted and best perfroming healthcare
business. The entity has three businesses thata are based on reserach, development addition to
manufacturing innovative pharmaceuticals vaccines, medicines as well as consumer healthcare
commodities. The values of the organisation are based on patient focus, integrity, transparency
along with respect (Berry‐Stölzle and Xu, 2018). At same time, the expectatiosn are based on
courage, development, teamworlk along with accountability. The busienss aims to bring
differentiated, needed together with high quality healthcare commodities to as many individuals
as possible through the global businesses, scientific along with technical know-how as well as
talented people. The company also aim to work by proper planning, arranging, leading as well as

controlling its functions for minimising risk effects on its capital and revenues. Due to
complexitities in external environment, the entity faces various types of risks that impacts its
workings to achieve its key aims and objectives. A risk is an uncertain event which inflences
objective achievemnt of the entity in positive and negative manner. All entities sets their
objectives after considering tyhe probabilities of occurence of risk and considered current
enterprise risk. Hence, there is huge linkage among aim of company and enterprise risks.
Risk Thresholds
It is an essential project management tool through which an entity measures uncertain
degree as well as level of impact that a stakeholder as well as entity may have interest. It sets
certain valuables that states that the company will accept the risk at that level or not. In other
words, risk threshhold is defined to risk amount whcih a company and its memebesr are willing
to welcome or accept (Cook, 2017).
Likehood is termed to possibility of risk potential occuring that is measured in qualitative
values like low, medium addition to high. These three label assessment are refered to ordinal
assessment as they on risk managemenetrders potential despite of providing undertstanding
differences among teh values. In other words, likelihood is characterised to qualitative
assessment which is subjective with low objective measurement. Similarly, impact scales are
defined to another tool that helps in scaling the impacts that are due to the risks. It is generally
used to analyse the risk impacts on the operations of business (Deck, 2015). The managers of
GlaxoSmithKline uses likehilood along with impact scales for calculating risk scores.
At an enterprise various types of risks are associated with them. Risks are said to the
events which arises due to uncertainties and have effects on objectives and aims of the company.
As eacha nd every project of company is unique so associated risks ususally varies among the
projects. Risk threshhold is one of essentail component whcih manages increasing likehilood for
project success. The GlaxoSmithKline uses probablility along with impact matrix so to identify
unacceptable risk scores. As selected organistaion works in pharmaceutical sector and
manufactures medicines and many more commodities, huge types of risks are associated with it.
Some of them are health related risks, physical chemical risks, risk of organic synthesis,
competition risk, supply chain risk, technology risk and legal liability risk.
The main objective behind using risk threshhold at GlaxoSmithKline are to measure
extent of which uncertainity or risk are accepted (Fiksel, 2015). For this, the organisational

managers uses probability of 1 to 15 under which the risks will defined as acceptable or
unacceptable. Moreover, the risk matrix for teh above risks is as follows:
As per the above matrix, the risks that scores 11 or more will fall into category of high
extreme along with catastrophic risk that are in red colour. These risk are generally unacceptable
by the entity. In addition, the risk that score between 5 to 10 are moderate as well as major risks
that are in yellow colour. Moreover, risk scoring between 3 to 4 are generally minor risk and the
risk that has score of 2 or below are insignificant risks. With the help of risk matrix, managers of
GlaxoSmithKline increases risks visibility along with makes decisions accordingly.
Risk register
Risk register is one of tool which helps in documenting risk together with stating actions
to manage all type of risks. It plays essential role in successfully managing all risks. The moment
risk are analysed or identified, they are entered into register do that further workings are
performed to prepare actions for responding to risks. In context to GlaxoSmithKline, managers
identify potential risks that may arise in the completion of projects and fulfills regulatory
compliance by entering the risk into risk register (Florio and Leoni, 2017). The risk register
primarily includes information about all identified risks, nature of risk, who owns it, risk level
along with mitigation measures to responding them. As all enterprise faces some of other risk, it
is essential for them to frame a mechanisms for collecting potential risks types as well as
mapping out path so that the project or organisational workings gets back on track. The risk
register of GlaxoSmithKline is as follows:

Risk
num
ber
Risk description Existing
control
Likelihood Impacts Risk
ratin
g
Mitigation
action
1 Competition Risk:
Pharmaceutical
organisation is facing
competition as there is
competition in
pharmaceutical as there
are many companies
who are selling their
medicine in competitive
environment. Pfizer,
Amgen and Merck is the
main competitor who are
selling their medecines
at wider level and getting
higher profits. Due to
this competition
respective company is
facing risk which has
impacted on business
organisation.
To control
the
Competition
risk
management
are making
effective
strategy and
planning
which helps
to bear with
risk and
gaining
competitive
advantages.
Moreover for
controlling
this
organisation
is providing
better quality
of products.
Highly
probably
The impact
of
competition
risk is
production
and
profitability
of
organisatio
n is
reducing
continuousl
y because
there are
more
organisatio
n who
provide
same
6 To mitigate the
competition
risk
organisation
need to focus
on their
strategies and
products that
should be
unique and
better quality
which can
retain existing
as well as new
customers and
make them
happy.
2 Supply chain - This
means when products
and services are not
properly by organisation
To control
the risk of
supply chain
organisation
Moderate The impact
of
moderate
risk of
7 To mitigate the
risk of supply
chain
organisation

then they faces such type
of risk. In other words,
this is a systematic risk
which are facing by
GlaxoSmithKline in
order to supply their
products and services.
As its products or
medicines are not
available in rural area
and other that can reduce
the selling activities.
Herein, organisation
need to analysis the risk
or area where products
are not reaching properly
and make plans to
provide products
accordingly.
need to focus
on all areas
and needed
to maintain
proper
supply chain
management
under a
systematic
process
which are
control the
business
activities or
supply chain
management.
supply
chain
selling
activities of
organisatio
n are low
which has
impacted
on business
such as less
in selling
and
profitability
due to
which
organisatio
n is not
reaching its
target.
will run the
supply chain
management
programme
which will help
to secure the
relationship,
prevent supply
bottlebeck.
Moreover, this
ensure that
operating
supply chain by
both manner
ethically.
Moreover, to
improve this
risk
management
need to
identify, assess
and mitigate
the risk by
supplying
products
appropriately.
3 Technology Risk – This
is main risk which is
following by business
organisation while
running their business.
To control
this
technological
risk
organisation
High
probable
The impact
of
technologic
al risk is
organisatio
7 To mitigate the
technological
risk
organisation
focus on

Technology is adopted
by all organisation at the
time of running their
business which is an
opportunity and risky
both. As by using new
technology organisation
become more able to
perform well or produce
products effectively
which can helps to face
the competition in
business environment. In
this risk respective
organisation need to
make investment high or
skilled workers which is
difficult for organisation
to manage them.
involves
skills and
experienced
employees
who have
high
knowledge
about
pharmaceutic
als or
medicine
which helps
top improve
them by
using new
technology.
Moreover,
there is need
to have
effective
strategy
which helps
to control
risk.
n is facing
high
competition
which has
impacted
positively
or
negatively
both.
Positive is
selling
activities
and
profitability
are
increasingl
y
continuousl
y.
Negatively
is high
spendings
on
technology.
organisation
need to provide
training and
development
programme to
its employees
which helps to
accept the new
technology in
pharmaceutical
s in
organisation
and increase
the
profitability.
Moreover, sale
of products will
also increase
which will help
to minimize
risk.
4 Legal liability – This
means some time Opiod
organisation are consider
as fire for feeding the
epidemic filed from local
to federal level that
accuse drug maker of
To control
this risk
management
need to focus
on Attorney
General Jeff
Sessions who
6 The
impacts of
this risk is
organisatio
n can loss
the
registration
4 To mitigate the
risk
organbisation
need to take the
responsibility
of their
products as

misleading the public
about addictive
properties of opioid
painkillers. In this,
organisation do not take
any legal liability which
some time become
highly risk in business
environment.
helps to
investigate
manufactures
and
distributors
of
prescription
opioids.
and
certificate
of
manufactur
ing the
products
which can
limit the
selling of
products
and
medicines.
well as services
which can
helps to
provide better.
Moreover,
management
need to make
strong policies
which can
helps to
maintain the
liability and
responsibility
in organisation.
This will help
to overcome
the problem as
well increase
brand image
and market
share of
industry.
5 Physical chemical risk A
chemical consist of two
type of properties like
physical and chemical.
The mixture can contain
risk to workers working
in the company which
are other then related to
health issues. Such a
General
orientation
programme
is given to
the worker at
the time of
joining
organisation
so that they
Such
incidents
are
probable
to occur
An
organisatio
n.
Improper
handling
and usage
of such
chemicals
can lead to
damage and
injury to
the
6 There is a need
that company
provide extra
training and
development
sessions so that
local are able to
completely
understand how

cool just not because of
the biological interaction
with the chemicals but
due to improper handling
and usage (Griffiths,
2016)
.
can
understand
the
procedure of
handling
chemicals
and using it
in
production
procedure
(Hillson,
2017).
employee
and also to
the
property of
the
company.
Some of the
examples
are
exclusion,
chemical
reaction,
corrosion
and
claimable
accidents
(Hopkin,
2018).
to handle such
chemicals
which are
hazardous and
accidents
related to it can
be reduced. It
is also required
that proactive
actions are
taught to
workers so that
what can be
done in the
case of
accident is also
understood by
the
worker(Lyons,
2015).
6 Heath related risks These
are the risk of chemical
property of the raw
material that are used in
pharmaceutical
companies. This can
occur through and
Hayley Haitian, injection
are coming into the
direct contact and such
can have negative effects
they are just
Mask,
dresses and
other safety
measures are
done by the
organisation
so that
employs can
be protected
from these
It is
highly
probable
to occur in
pharmaceu
tical
manufactu
ring
organisatio
n.
This can
lead to
some of
acute
fracture like
vomiting,
headache,
skin
diseases
and other
long-term
10 To overcome
this the
organisation
can use of
different
compound
chemicals
which are less
harmful for
employees.
There are

for short and long term
(Zhao, Hwang and Low,
2016).
health issues.
There is a
need that
organisation
research and
identify
effective
safety
techniques
show that
workers can
be protected
health
issues like
nerve
damage,
cancer and
dermatitis.
This also
impact
working
condition
of the
organisatio
n which
creates
issues in
retaining
workers
and
labourers in
manufacturi
ng process
(Sweeting,
2017).
different
simpler
chemicals and
substitute
which have
been research
and identified
which can be
used in the
place of
existing
chemicals so
that less
negative impact
on the health of
the local
(Sadgrove,
2016).
7 Risk of organic synthesis
- there are three types of
such substances which at
present, versus
activations which attacks
and changes organic
compound. Second or
intermediate as they
Controlling
actions are
taken it
every
process so
that such a
mixture and
manufacturin
These are
one of the
highly
probable
race that
can occur
in
pharmaceu
As
discussed
earlier this
can also
have
adverse
effect on
the human
8 In order to
overcome and
mitigate this it
is essential that
company have
definite and
said controlling
actions at every

entered with willingness
into the chemical
mixture with another
unprocessed substance.
Last is the finished
product which are
medicines produced to
enter into the human
body but somehow they
can create a diverse is it
under some
circumstances of
manufacturing contact
(Trexler and Kosloff,
2017).
g defect can
be
controlled.
There are
different
tools and
techniques
which are
adopted by
the
organisation
so that the
compound
mixture of
the
chemicals
are not
mixed up
and have
adverse
affect on the
human body
while they
are
introduced
(Silva, Silva
and Chan,
2019).
tical
manufactu
ring
process.
body and
can act as
harsh
poison
instead of a
medication
step of the
manufacturing
process. The
vocal and also
train so that
they can detect
deviations in
the processes
and the
chemical
composition of
the substances.
Testing need to
be done at
every stage so
that chemical
composition of
the substances
are maintained
according to
the standards
(Renz and
Herman, 2016).
The above risk register shows different kind of risk like competition, supply chain, technological
, legal, physical chemical, health-related and organic synthesis risks. There is a need that