Our Enterprise Risk Management (ERM) program is a critical element of our risk management and strategic planning activities and provides a mechanism and appropriate governance for risk management. It enables us to identify the most significant risks to our organization that impact value to our stakeholders, along with mitigation plans to minimize the probability and/or impact of negative risks. The risk identification process includes a specific focus on ESG risks, in particular those related to climate change. We pursue a comprehensive risk management program as an essential element of sound corporate governance and are committed to continuously embedding risk management in our daily culture.
We have identified six risk categories:
- strategic risks
- financial risks
- corporate governance and reputation risks
- political, legal and regulatory risks
- products and services risks
- operational and performance risks; operational risks include business interruption risks (e.g. natural catastrophes) and environmental risks
Through this process we have drawn up a Lonza-specific risk map. Risks were identified for each segment and for the corporate functions, and the risks are being tracked.
EHS risk assessments serve as valuable tools in our business and operating practices and in our planning processes. We review new ventures, capital investments in production equipment and systems and other major projects not only for the business opportunities they present, but also for their environmental, health and safety impact.