Risk Management Report: Sanofi Aventis Pte Ltd Case Study

This report analyzes the risk management practices of Sanofi-Aventis Singapore Pte Ltd, a consumer healthcare company affiliated with the global healthcare organization Sanofi. The report begins with an executive summary, providing a brief overview of the company's operations and its structured yet adaptable risk management framework. It then delves into the company's work processes, particularly within the R&D division, highlighting the complexities and uncertainties associated with pharmaceutical projects. The report reviews past incidents, identifies hazard risks such as greenhouse gas emissions and waste generation, and categorizes the organization's risks across R&D, supply chain, operations, finance, human resources, and market-related areas. Good practices, such as employee training and product quality surveillance, are also examined. The report concludes with recommendations for risk treatment, including centralizing the supply chain with modern software and promoting cultural diversity and innovative recruitment to enhance the R&D talent pool, ultimately aiming to improve risk management effectiveness. The report also includes an analysis of the risk management framework, work processes, past incidents, hazard-risk identification, risk analysis and evaluation, good practices, and recommendations.

Running head: Risk Management
Risk Management
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Executive Summary
Sanofi Aventis Pte Ltd is affiliated to the global healthcare organization Sanofi. The brief
introduction about nature of business of the organization is provided in this report. The
organization is a consumer healthcare company which started its operations in Singapore since
the year 1997. The risk management framework of the organization is structured and flexible to
adapt to external situation. In this report, the work process and activity of the organization is
studied. It has been found while conducting this study that the risk management procedure of the
organization for pharmaceutical projects is complex because these projects are associated with a
high degree of uncertainty. The past activities of the organization are reviewed in the report. The
hazard risks of the organization are emission of green house gases and generation of wastes from
the manufacturing and packaging of medicines. While analyzing and evaluating the risk
management procedures of the organization it has been found that the risks of the organization
can be categorized into risks related to R& D projects of the organization, the Supply Chain
Management of the organization, operations, finance, human resource and market related risks.
Some of the good practices of the organization which are reviewed in the report are training of
employees about the local laws and surveillance of quality of the products manufactured by the
organization. It can be concluded that organization identifies the risks, prioritizes the risks, and
quantifies the value of the risks which help the healthcare company to manage risks effectively.
It is recommended that the Supply Chain of the organization should be centralized with
installation of modern software which will help the organization to supply medicines to
customers at right time and right place and will reduce the risks related to supply chain
management. It is also recommended that the organization should encourage cultural diversity
and adopt an innovative recruitment and selection procedure to have a talented pool of

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researchers and employees who will conduct the R& D projects of the organization. This will
help to reduce risks related to human resource.

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Contents
Company and Nature of Business....................................................................................................2
Description of Company’s Risk Management Framework.............................................................3
Description of Work Process and Activity Selected........................................................................3
Review of Past Incidents.................................................................................................................4
Hazard-risk Identification................................................................................................................6
Risk Analysis and Evaluation..........................................................................................................6
Review of Good Practices and Safety Technologies.......................................................................8
Conclusion.....................................................................................................................................10
Recommendations of Risk Treatment...........................................................................................10
Reference Lists..............................................................................................................................12

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Company and Nature of Business
Sanofi-Aventis Singapore Pte Ltd is a consumer healthcare company which was
established in the year 1997 in Singapore. The organization serves residents and patients of
Singapore by manufacturing generics, animal and consumer health products. The organization
focuses on Research and Development and provides therapeutic solutions to customers in
multiple arenas which include central nervous system, thrombosis diseases, oncology, and
rheumatoid arthritis, internal medicine which treats prostatic hyperplasia, cardiovascular diseases
and vaccines for viral and bacterial diseases. The manufacturing units of Sanofi-Aventis
Singapore Pte Ltd are located in Japan, Continental Europe, United Kingdom and the United
States. The organization is affiliated to global healthcare organization Sanofi. The vision of
Sanofi-Aventis Singapore Pte Ltd is to be a diversified service provider in the healthcare industry
by focusing on the needs of patients. The organization also improves the knowledge, skills and
professionalism of employees by organization training and development programs for them.
Sanofi-Aventis Singapore Pte Ltd stays focused to boost profit and sales by improving value for
shareholders. The organization also serves the noble purpose of providing medical education to
patients and healthcare workers of Singapore (sanofi.com.sg 2017).
Description of Company’s Risk Management Framework
The risk management framework can be divided into a master plan of risk management.
The corporate team of risk management of Sanofi-Aventis Singapore Pte Ltd develops the
master plan of risk management for the organization. The Risk management Project Plan is also

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an important part of the risk management framework of Sanofi-Aventis Singapore Pte Ltd The
management of Sanofi-Aventis Singapore Pte Ltd ensures to manage risks in an effective way.
The pharmaceutical projects of the organization are guided by a model of decision making under
risky situations. Sanofi-Aventis Singapore Pte Ltd adopts an analytical approach to manage risk
and the risk management framework of the organization is structured well. The members of
project team of Sanofi-Aventis Singapore Pte Ltd are involved in the process of risk planning.
The tools of the risk management process of the organization should be adaptable and flexible
(Sadgrove 2016). Sanofi-Aventis Singapore Pte Ltd adopts similar approach (sanofi.com.sg
2017).
Description of Work Process and Activity Selected
The R &D division of Sanofi-Aventis Singapore Pte Ltd is committed to conduct
biomedical research and the innovation of research and development projects of the organization
focused on controlling infectious diseases. These pharmaceutical projects of Sanofi-Aventis
Singapore Pte Ltd are uncertain and highly complex and a substantial amount of organizational
resources are involved in these projects. Thus the risk management process for these complex
projects have been quite challenging to implement for Sanofi-Aventis Singapore Pte Ltd. The
projects for development of drugs have specific needs and challenges and the risk management
process of an organization should address the risk (Kerzner 2013). The organization also adopts
a risk management framework across all primary activities of its value chain activities which
include Supply Chain Management, Operations, Marketing and R&D. The work process of
Sanofi-Aventis Singapore Pte Ltd adopts a strong culture for risk management. The organization
adopts a transparent work process for managing risks. Sanofi-Aventis Singapore Pte Ltd adopts
backward-looking view to analyze the types of risks. A forward looking view is adopted by the

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organization towards risks which are emerging and existing. The work-process adopted by
Sanofi-Aventis Singapore Pte Ltd has developed a risk management framework which is in
alignment with the corporate and business level strategies of the organization. The information
of risk is integrated with the work process and business process of the organization which helps
in effective decision making under critical situation. The risk governance and organization
process of Sanofi-Aventis Singapore Pte Ltd has a well-defined structure. The responsibilities of
the risk team of Sanofi-Aventis Singapore Pte Ltd are clear and the risk teams of the organization
works under guidance of members of Board of the organization (sanofi.com.sg, 2017).
Review of Past Incidents
The Sanofi-Aventis Singapore Pte Ltd has developed relationships that are mutually
beneficial among its stakeholders to communicate risks properly. The involvement of
community and transparency among stakeholders enabled the organization to manage its
reputational risks. The strategic roadmap of the organization adopted an integrated approach to
link expectations of stakeholders and activities of the business process. The organization
maintained a high standard of ethical conduct while dealing with healthcare professionals. The
talented pool of healthcare professionals of Sanofi-Aventis Singapore Pte Ltd helped in the risk
management process of the organization by providing insights and feedbacks about the products
of the organization and conducted training programs of healthcare education for the employees
of the organization. The organization has collaborated among partners, healthcare professionals
and healthcare organizations to ensure greater transparency in its business process. The future of
research and development of new medicines is highly dependent on a transparent business
process. Sanofi is a member of The European Federation of Pharmaceutical Industries and
Associations and discloses information related to the value creation of healthcare industry like

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educational grants provided to healthcare organizations. The organization has renewed its
partnership with the World Health organization and has partnered with International Diabetes
Federation and Drugs for Neglected Diseases Initiative (DNDi) to ensure innovation of
medicines. The approach of the organization was aligned with the United Nations Global
Compact and the Save the Children concept of UNICEF which developed the Children’s Rights
and Business Principles (sanofi.com.sg 2017). Sanofi-Aventis Singapore Pte Ltd ensured to
manage risk effectively by making data of clinical trial available to the research community. This
sharing of information has helped the research community of the organization to improve public
health, to conduct innovative research in medicine and science and to increase the level of
knowledge and enhance trust among community members for the development of
pharmaceutical drugs. The organization focused on five commitments which included sharing of
data with researchers, enhancing access to Clinical Study Information among public, sharing of
results with patients who participated in clinical trials, strengthening commitments to publish
results of clinical trial and certifying the procedure of sharing the Information of Clinical Trial.
The organization adopted an effective risk management framework to manage potential risks.
Hazard-risk Identification
The manufacturing divisions of Sanofi-Aventis Singapore Pte Ltd use a large amount of
chemicals especially organic chemicals to manufacture medicines at bulk for customers. Thus
the risk of accidents in the manufacturing units is a potential hazard identified by the
organization. The employees of the organization are also exposed to health hazards in the
manufacturing units. The drug manufacturing process of Sanofi-Aventis Singapore Pte Ltd has a
complex framework and involves hazards related to off-site and on-site environmental
overheads. The emission of green house gases and generation of wastes are environmental

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hazards that are involved in the manufacturing and packaging of medicines. The medicines
developed by the organization can pose hazards related to health of patients if the medicines are
not clinically tested before launch. For a consumer healthcare company like of Sanofi-Aventis
Singapore Pte Ltd the identification of hazard-risk is of paramount importance because the
organization is responsible for developing life-saving medicines for patients. The
implementation of safety procedures, proper monitoring, control and surveillance and abiding by
healthcare standards can minimize the hazard-risks of Sanofi-Aventis Singapore Pte Ltd
(Glendon, Clarke and McKenna 2016).
Risk Analysis and Evaluation
The risk analysis is the process of identification of and management of potential
problems that can affect the business process and projects of an organization (Lin, Wen and Yu
2012). In the process of risk analysis the identification of potential threats and the likelihood of
occurrence of these threats are required to be analyzed (Lam 2014). For proper risk analysis of
Sanofi-Aventis Singapore Pte gathers information about financial data, forecasts of the market,
project plans and security protocols that are functional across various divisions and departments
of the organization. The risks of Sanofi-Aventis Singapore Pte Ltd can be categorized into
operational risks like disruption of supplies or failures in the process of distribution. The
procedural risks of the organization include failures of internal systems and failure of
accountability. The financial risks of Sanofi-Aventis Singapore Pte Ltd include inadequate
supply of funds and stock market fluctuation(sanofi.com.sg 2017).The risks related to Research
and Development (R&D) projects of the organization are issues with quality, improper allocation
of resources, inadequate funding and failure to complete the projects on time. The risks related to
human resource management are inability to maintain a talented pool of human resource and

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crisis related to diversity, communication gap, discrimination, biases and stereotypes. The
market-related risks of Sanofi-Aventis Singapore Pte Ltd include risks associated with inaccurate
prediction of market demands and consumer needs and risk related to loss of reputation in the
marketplace. The organization is also susceptible to risks of macro environment like changes of
public opinion, tax barriers and government policies and risk associated with natural disasters.
The risks of the organization can be estimated by determining the risk value which is
multiplication of cost of event and probability of event (Hoyt and Liebenberg 2011). A
consumer health company has the responsibility to provide life-saving drugs to patients. Delay in
supply of the drugs can lead to adverse consequence like loss of life of patients which is a
potential risk that can be identified. There are risks associated with the Research and
Development projects of Aventis Singapore Pte. Ltd like risk related to prioritization of projects,
allocation of resources in the projects, budget related risks and risks associated with the
technology which support the projects. Research and innovation is the core competency of
Aventis Singapore Pte Ltd. Thus partnering with a talented pool of research partner is essential to
ensure new product development and improvement of existing products. The process of clinical
trials and testing of medicines involve risks and hazards and the medicines can’t be
commercialized unless they undergo a robust clinical testing procedure (Lawrence et al. 2014).
The commercialization of medicines of Aventis Singapore Pte Ltd are subjected to risk of the
marketplace like laws and regulations of the country of operation, competitive pricing of
medicines so that patients can avail medicines at affordable price , the risk related to prediction
of demands of the marketplace and risks associated with development of new marketplace. The
supporting activities of the value chain of Aventis Singapore Pte Ltd like the Human Resource
management, Infrastructure and Information Systems are also subjected to risks. The

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organization can face risks related to unfair accounting practices. Ineffective corporate
governance can lead to risk of fraudulent accounting practices which can tarnish the reputation of
the organization (Mikes and Kaplan 2013).Aventis Singapore Pte Ltd is a global organization
and thus is vulnerable to risks associated to ineffective management a cross-cultural global team.
The management of diversity in a cross-cultural team which includes both surface level and deep
level diversity is essential to mitigate the risk of biases, stereotypes and discrimination which are
potential risks faced by cross-cultural teams(Garavan 2012.) The management of such risks is
essential with adoption of an open communication model and development of a organizational
wide culture in favor of diversity. The organization should manage risks associated with its
supply chain by ensuring to partner with reputed suppliers, using multimodal transport system
and centralizing its supply chain (Tang and Musa 2011). It is essential to manage the risks of the
organization. The risks of the organization can be managed adequately by avoiding risks,
sharing risks and accepting risks (McNeil, Frey and Embrechts 2015). The risks should be
evaluated by ranking the risks according to the probability and consequences of the risks
(Hopkin 2017).
Review of Good Practices and Safety Technologies
Sanofi-Aventis Singapore Pte Ltd focuses on adopting safety practices across all its
manufacturing division. There are many environmental risks involved in the process of
manufacturing, packaging and distribution of medicines. Sanofi-Aventis Singapore Pte Ltd aims
to minimize environmental risks like emission of green house gases and generation of wastes
which are associated with its manufacturing divisions across the globe. The employees of the
organization are robustly trained about the local laws of the countries. Sanofi- Aventis Singapore
Pte Ltd is a global organization and operates in several countries across the globe. Thus, the

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familiarity of its employees with local laws and regulations enables employees of the
organization to adapt to different consumer market related risks. Sanofi-Aventis Singapore Pte
Ltd priced its medicines fairly and competitively to minimize risks from competitors
(sanofi.com.sg 2017).The Research and Development team of the organization focuses on
developing medicines after studying the needs and requirements of customers based in Singapore
and across the globe. The quality and safety team of the organization is focused on surveillance
of its products (Mollah, Baseman and Long 2013).Sanofi Aventis Singapore Pte Ltd is dedicated
to comply with standards of occupational health and safety across all activities of its value chain.
The organization conducts clinical trials to ensure that medicines are properly tested before they
are commercialized in the marketplace. The supply chain process of Sanofi- Aventis Singapore
Pte Ltd ensures that medicines are available to the customers at the right time and right place. To
avoid risks in the Supply Chain Management process, the entire process of supply chain
activities should be centralized and modern technologies like Supply Chain Management
software should be implemented to ensure smooth flow of supply chain activities (Ho et al.
2015). Sanofi-Aventis Singapore Pte Ltd has suppliers and distributors across the globe and the
intermodal transport system of the organization helps to handle risks associated with the logistics
management. The centralization of the supply chain management process also enables to predict
the demand and supply factors of the marketplace accurately so that the Bull-Whip effect of the
supply chain is reduced (Sodhi, Son and Tang 2012). Sanofi-Aventis Singapore Pte Ltd also
practice fair accounting practices and the sustainable accounting practices of the organization
ensures to create profit for shareholders as well as creates long-term value for stakeholders
(sanofi.com.sg 2017).