As well as the activities mentioned above to identify risk, Novozymes has a formal process to continually map and mitigate risks. All business units and vice presidents systematically report new risks and any changes to previously defined risks. This process ensures that top management has a high level of risk awareness, with involvement and ownership throughout the organization.
Reported risks are collated and mapped by the Risk Management Office on the basis of probability and possible consequences. Risks are assessed based on both financial impact and the impact on reputation, and the reporting covers both financial and nonfinancial risks.
The aim of risk management at Novozymes is to ensure proactive management of the key risks, so that efforts to reduce both probability and unwanted consequences will be made where possible.
Every six months, risks are reported to the Risk Management Office. Based on the mapping of these, a shortlist of approximately 30 risks judged to be the most significant is reported to Executive Management. Twice a year, the most significant risks are also presented to the Board of Directors.
This systematic and analytical approach to risk management enables Novozymes to achieve greater transparency and gives a stronger basis for making decisions about investing resources. In addition, it provides Management with the opportunity to discuss risks and undertake the necessary actions in relation to the Group’s risk profile.
The following section Risk factors describes a number of critical risks along with measures that Novozymes has implemented to reduce them. The list is not in any order of priority and is not exhaustive.