October 5, 2014
MEDA AB and Enterprise Risk Management
MEDA AB is an international specialty pharmaceutical organization with its headquarters set in Stockholm, Sweden. MEDA specializes is offering cost effective pharmaceuticals in areas such as respiratory, cardiology, dermatology, pain and inflammation, central nervous system (CNS), and over-the-counter (OTC) medicines (MEDA AB, 2012, p. 18). MEDA’s vision is to “become a world-leading specialty pharma company with a focus on sustainable and profitable growth to provide value for our patients, shareholders and other stakeholders” (MEDA AB, 2014, para. 1). MEDA is currently present in …show more content…
“A 2010 survey of 1,541 executives by the Deloitte Consulting firm, reported 80% of their organizations either had an ERM program in place or were currently implementing one” (Blocher, Stout, Juras, & Cokins, 2013, p. 14). An effective enterprise risk management program begins by developing a framework. A generic ERM framework proposed by the Institute of Management Accountants is as follows:
Set strategy/objectives Identify risks Asses risks Treat risks
Control risks Communicate & monitor repeat….
(Institute of Management Accountants, 2007, p. 2)
Following this framework an organization must begin by stating their objectives and strategy to achieve those objectives clearly. “Without clear objectives it is impossible to identify events that might give rise to risks that could impede the accomplishment of a particular strategy or objective” (Institute of Management Accountants, 2007, p. 3). Once objectives are set and strategy decided, potential risks must be identified. It is important to recognize that risk is often misperceived as something that happens suddenly; when the most pressing risks are often those that remain present of a continual basis. Being able to identify these continually pesent risks and openly discussing them