The pharmaceutical industry must prioritize enhancing risk management to bolster safety and sustainability, asserts Kim Carlson Altom, Global Operations Risk Management Practice Director at dss+. She emphasizes the critical role of leadership in fostering a safety-conscious organizational culture.
“Risk management transcends mere compliance. It involves weaving safety into the very fabric of an organization’s operations. From top executives to frontline workers, everyone must align with the company’s safety and performance objectives,” Altom elucidates.
Hitesh Thaker, a Principal at dss+, highlights the value of long-term partnerships for enduring success. “We embark on a multi-year collaboration with our clients, cultivating their ability to manage risks independently. Over five to six years, we aid in establishing systems that elevate both safety and business performance,” Thaker elucidates.
As the pharmaceutical sector expands globally—contributing over $50 billion annually and 20% of global generic medicine exports—companies are focusing on effective operational risk management to protect lives and the environment, while ensuring sustainability of their business.
The industry faces mounting challenges, including increasing regulatory pressures with compliance costs soaring by 15-20% and protecting the health of over 2.7 million workers. In response, pharmaceutical leaders are implementing advanced systems and processes to minimize risks and enhance safety across their operations.
Nonetheless, safety incidents continue to cause concern. In November 2024, Telangana’s pharmaceutical sector witnessed 97 significant fire accidents over the past decade, and a factory explosion in August 2024 led to the tragic deaths of 17 workers. These incidents highlight the urgency for pharmaceutical leaders to reinforce risk mitigation strategies and optimize operational performance.
Industry experts agree that a strategic, risk-based decision-making framework is vital for achieving business and safety objectives. Implementing comprehensive risk management systems enables companies to not only comply with regulations but also foresee and address potential challenges before they disrupt operations.
As pharmaceutical companies advance globally, they face the challenge of navigating complex risk landscapes to balance efficiency, compliance, and workforce health and safety. Addressing both physical and mental well-being of employees remains a primary concern. Leaders assert that incorporating risk management practices into daily operations is crucial for workforce protection and business continuity.
“Growing organizations must address two fundamental cultural questions: What organizational culture will support our growth, and how can we align everyone with this desired culture? This involves merging technical skills with leadership growth to create a cohesive vision from the CEO down to security personnel,” states Thaker at dss+.
With the growing complexity of global regulations, pharmaceutical companies must proactively manage regulatory risks impacting product development and distribution. Compliance with both local and international standards is essential to minimizing the risk of legal issues, recalls, and fines. As regulations continue to develop, firms collaborate closely with authorities to anticipate and mitigate emerging risks.
“Our partnership journey with clients goes beyond enhancing safety to ensuring a sustainable future for the next generation of healthcare,” concludes Altom.