Novozymes has established a formal process for mapping risks. The process ensures involvement and ownership in the organization as well as proactive management of the most significant risks. Novozymes defines risks as "events or tendencies that can prevent the company from achieving the overall goals – including financial environmental and social goals – or negatively affect our future results and activities".
The goal for strategic risk management is to ensure that the most significant risks are proactively managed and that the appropriate management levels are given the attention necessary. With a systematic and analytical approach to risk management, Novozymes achieves greater transparency resulting in a stronger decision-making foundation for investing resources in new opportunities and growth. In addition, it provides management the opportunity to discuss risks and take necessary actions concerning the company’s risk profile and the willingness of Executive Management and the Board of Directors to take risks.
As part of the annual strategy process, Novozymes conducts an evaluation of the long-term growth opportunities. As part of this work, risk factors and measures to limit risk are identified, and these are then managed by the respective units. The most significant business risks are reported to Executive Management and the Board of Directors each quarter.
The following section describes a number of the most significant identified risks and the measures which Novozymes has implemented. The list is not in any order of priority and is not exhaustive.