Safety and Business Sustainability in Pharma

Expert stresses on need to strengthen risk management to improve safety & business sustainability in pharma industry

There is a need for strengthening risk management to improve safety and business sustainability in the pharma industry, says Kim Carlson Altom, Global Operations Risk Management Practice Director at dss⁺, while also stressing the importance of leadership in cultivating a culture of safety.

“Risk management is not just about compliance—it’s about embedding safety into the organization’s DNA. From the C-suite to the frontlines, every individual must be aligned with the company's vision of safety and performance,” explains Altom.

Hitesh Thaker, Principal at dss⁺, underscores the significance of building long-term partnerships to ensure sustainable success. “We guide our clients through a multi-year journey to develop the capabilities necessary to manage risk effectively and independently. Over a five-six-year period, we help them implement systems and processes that enhance both safety and business performance,” Thaker further explains.

As the pharmaceutical sector continues its global expansion – contributing over US$ 50 billion annually to the global market and accounting for 20% of the world’s generic medicines exports, companies are increasingly prioritizing the effective management of operational risks to safeguard both human lives and the environment, while ensuring business sustainability.

Amid growing challenges—from evolving regulatory demands with compliance costs surging by 15% to 20% to safeguarding over 2.7 million workforce health concerns—pharmaceutical leaders are implementing advanced systems and processes designed to mitigate risks and enhance safety at every level of their operations.

Yet frequent safety incidents remain a concern. In November 2024, Telangana's pharmaceutical sector recorded 97 major fire accidents over the past decade, and in August 2024, a factory blast tragically killed 17 workers. Given these alarming incidents, pharmaceutical leaders must take immediate action to strengthen risk mitigation strategies, address safety concerns, and improve overall operational performance across their operations.

Leading experts in the industry agree that a strategic, risk-based decision-making framework is essential for achieving both business performance and safety goals. By integrating robust risk management systems, companies can not only meet compliance standards but also anticipate and address potential hazards before they impact operations.

As pharmaceutical companies scale operations globally, one of their key challenges is navigating complex risk landscapes—balancing operational efficiency, regulatory compliance, and the health and safety of their workforce. Occupational health risks remain a Central concern, with companies focusing on both physical and mental well-being for employees. According to industry leaders, embedding risk management practices into the daily fabric of operations is critical for safeguarding the workforce and maintaining business continuity.

“Growing organizations face two fundamental cultural questions: What type of organizational culture will support our growth? And how can we align every team member with this desired culture? It’s about aligning technical capabilities with leadership development—creating a unified vision that spans from the CEO to the security guard,” says Thaker at dss⁺.

With the increasing complexity of global regulations, pharmaceutical companies must also proactively assess and manage the regulatory risks that could impact product development and distribution. Ensuring compliance with both local and international standards is critical to reducing the likelihood of legal challenges, product recalls, and fines. As the regulatory environment continues to evolve, companies are working closely with authorities to stay ahead of changes and mitigate associated risks.

"We are in a partnership journey with our clients—not just to improve safety but to ensure a sustainable future for the next generation of healthcare," says Altom.