The industry which has produced these drugs has understandably been described as “world class and a jewel in the crown of the UK economy”.” (The influence of the pharmaceutical industry, 2005, p.3). Pharmaceutical companies will have to reconsider their risk management strategies in order to keep pace with the changes in the industrial risk profiles and the latest business models. “According to the KPMG research, while they have risk frameworks and a “controls culture” in place, from being part of a highly regulated industry, they may not be able to keep pace with their changing business models and industry risk profiles. An additional factor is that Parma companies have tended to operate in business silos.” (Pharmaceutical companies need to improve their risk management framework: KPMG, 2010).
Till 1998, industrial risk in pharmaceutical companies in the U.K. was pretty much unheard of. However, after 5 years, the entire situation dramatically changed, with a number of companies reporting critical issues such as underdeveloped product pipelines, product supply, huge competition, delay in product launching, inability to retain talented employees & so on. In order to resolve these issues, companies have begun to adopt new risk management strategies. As a matter of fact, companies have expressed their willingness to review and update their approach towards risk management.
According to author Martin Stephens, since the past few years there has been substantial increase in the number of pharmacies involved in the manufacture of clinical substances. The major objective of risk management is to eliminate the various risks in the business as well as to considerably improve the quality of the products. As a result, risk management plays an integral role in assuring the quality of the pharmaceutical products and services. Quality assurance (QA) is highly important in the pharmaceutical sector as it helps