Question

Situation: ABC Pharmaceuticals, Inc. is a mid-sized (500 employees) drug manufacturer located in Richardson, Texas. ABC has several drugs on the market that are widely used and are primarily designed for pain management.  ABC’s offices occupy several floors of an office building located on Hwy 75.

The formulas for ABC’s medications are patented, i.e., no one else can manufacture ABC’s drugs without their permission. Dr. Arek Skuza is ABC’s chief chemist. He is responsible for the research and development of new drugs. ABC’s labs are located on one floor of the leased space. The manufacturing equipment that actually fabricates the drugs is located on another floor.

ABC has just decided to hire a Risk Manager. You have been hired.

1. Identify two (2) Loss Exposures for ABC.
2. Indicate what sources of information you used to identify the 2 Loss Exposures identified in (1), above.
3. Which, if any, of the Risk Control Techniques discussed thus far would you recommend be employed in dealing with each of the (2) Loss Exposures, and why?
4. Which, if any, of the Risk Financing Techniques discussed thus far would you recommend be employed in dealing with each of the (2) Loss Exposures, and why?

Answer 1

Situation: ABC Pharmaceuticals, Inc. is a mid-sized (500 employees) drug manufacturer located in Richardson, Texas. ABC has several drugs on the market that are widely used and are primarily designed for pain management. ABC’s offices occupy several floors of an office building located on Hwy 75.
Situation : ABC pharmaceuticals, Inc. is a mida sized (500 employees) drug manufacturer located in Richardson, Texas. Ans: After going through the above article I believe below would be a loss exposure for ABC · If Dr. Arek skuža moves to another pharma- ceutical company for his personal growth and benefits? - As Dr. Arek is chief chemist for ABC he aware about most of the important formulas and decisions of ABC so he moving put of the organisation would be a loss exposure for ABC. The difference between the floors of the Research and development labs and manufacturing out of unit of the company. Difference between the floors can increase the chance of data breach which can put ABC is loss so I beleive this could be one of the loss exposure for ABC.

To get the above in formation I Summarised the above article and went through the different types of risk for a pharmaceutical Companies which are listed as below. Dota breaches * Quality risk # Pisk from third parties * Supply chain risk * Geopolitical risk. In consideration with the above risk factors and the things mentioned in article I've come to my decision of the above a loss exposure to ABC which I have mentioned in Answer 1. The below are the risk controls techniques used to mitigate the risk associated with most of the companies.

* Elimanation - Eliminate the risk factors from 7 being involved * Reduction - Reduce or mitigate the risk to minimal with determaining the risk factors and control measures to reduce those * Administrative controls - this can be used to migitate the risk involved with location, employees and the staff. + Retention - observing the customer need, employee need and holding them for long period. with help of this techinques we can deal with the above a loss exposure for ABC limited. * For First loss exposure we can strengthen. our employee rentention policies which could help as to cope with the development and research fisk associated with ABC.

* for second loss exposure we can utilise our administrative facilities in more convenient and effective way which can help ABC to overcome with Dota broaches and supply chain problem and eliminate the loss associated with them.