ENTERPRISE RISK MANAGEMENT IN PHARMACEUTICAL COMPANY (A CASE STUDY OF FIDSON HEALTHCARE LIMITED.)

ABSTRACT

Risk is at the center of life itself. How pharmaceutical companies successfully implements an Enterprise Risk Management (ERM) programme, to identify and manage potential risks, can mean the difference between financial freedom and financial despair. As a practical option for managing risk, it is associated with a number of factors that hamper its smooth flow. These difficulties manifest when companies lack knowledge of ERM Frameworks; still using the traditional ways of risk management. The problems become more compounded when the adopted ERM frameworks would not fully be utilized; as in the case with pharmaceutical companies in Nigeria. The researcher then quickening to use this piece of study,  to evaluate the use of ERM in pharmaceutical companies, with its associated prospects, challenges and problems. The researcher sourced data from the primary and secondary sources of data for this work, using works by other authors and information from the oral interview carried out on the respondent. Despite the new accreditation guidelines and a provincial strategy for managing risk, adherence to effective risk management remains suboptimal in our pharmaceutical companies and in many industries. It was discovered that although ERM is being implemented in Nigerian pharmaceutical industry, the level of implementation is either very low or cannot be easily ascertained. Also, it was further discovered, that there exist an insignificant but positive relationship between ERM and total assets and liabilities as proxies for firm size and leverage. The researcher made recommendation from the findings of this works that there is need to encourage and adopt the full use of ERM frameworks in industries and there is need for more explicit measures in identifying firms that engage in ERM and those that do not.    

TABLE OF CONTENTS

 

TITLE                                                                                PAGE                                                                                                        

Inside Title Page                                                               ii     

Approval Page                                                                    iii                          

Dedication                                                                         iv                        

Acknowledgement                                                             v                                                                             

Abstract                                                                           vi                                                                                                   

Table of Content                                                               vii                                                                                      

CHAPTER ONE: INTRODUCTION

1.1       Background of the study                                          1

1.2       Statement of the Problems                                       4

1.3       Objectives of the Study                                             5

1.4       Relevant Research Questions                                   6

1.5       Scope and Limitations of the Study                          6

1.6       Significance of the Study                                          7

1.7       Definition of Terms                                                   7

CHAPTER TWO: LITERATURE REVIEW

2.0       Introduction                                                         10

2.1        Concept of Risk                                                   10

2.2        Objectives and Principles of Risk Management     13

2.3        Historical Context of ERM                                   16

2.4        The ERM Frameworks of Pharmaceutical             18

     Companies

2.5        Risks in Pharmaceutical Companies                    23

2.6       The ERM process for Pharmaceutical Companies 27

2.7       Risk and Economic Capital Models                       30

2.8       Risk Tolerance in Pharmaceutical Companies       31

2.9       Main Risk and Regulatory Requirements              33

2.10    Problems and Challenges in Pharmaceutical          37

  Companies    

2.11    How Pharmaceutical Companies manage these      39

   Main Risks

 

CHAPTER THREE: RESEARCH METHODOLOGY

3.0    Introduction                                                            42

3.1    Research Design                                                      42

3.2    Population of the Study                                           43

3.3    Sources of Data                                                       43

3.3.1 Primary Data                                                           44

3.3.2 Secondary Data                                                       44

 

CHAPTER FOUR: DATA PRESENTATION AND ANALYSIS     

4.0    An Overview                                                            45

4.1    Introduction                                                            45

4.2   Analysis                                                                   46

CHAPTER FIVE: SUMMARY OF FINDINGS, CONCLUSION AND RECOMMENDATION

5.0   Introduction                                                             60

5.1   Summary of Findings                                               60

5.2   Conclusion                                                               63

5.3    Recommendation                                                    65

5.4    Suggestions for Further Studies                              66

REFERENCES                                                         68

APPENDICES                          

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