Individual Learning Project 2

2320 Words Oct 23rd, 2014 10 Pages
Individual Project 2: Enterprise Risk Management
Ashley Jonsson
BUSI 601
Liberty University
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…
Instead the company’s resources are concentrated on development close to the market in the late clinical or registration phases” (Meda AB, 2014, para. 3). Unfortunately, risk management is not that simple and MEDA faces much more risk factors than just product development; country specific regulations financially and developmentally, currency fluctuations, and product rights to name a few. Enterprise risk management is a technique available to help manage such high levels of risk; such “financial risks due to foreign currency fluctuations, commodity price fluctuations, and changes in interest rates; operating risks related to customers, products, or employees; and strategic risk related to top management decisions” (Blocher, Stout, Juras, & Cokins, 2013, p. 14). After conducting a thorough SWOT (strengths, weaknesses, opportunities, threats) analysis on MEDA, it was concluded that the continued success of the organization is threatened by their insufficient efforts to manage risk (Jonsson, 2014). Adopting an ERM program could help to better organize how risk is controlled through “increased risk awareness that facilitates better operational and strategic decision making” (Hoyt & Liebenberg, 2011, para. 2).
Analysis of enterprise risk management Enterprise risk management is a technique used by organizations to manage risks that have the potential to affect the company, both positively and negatively, altering…