Material Risks CSL operates in a fast-paced and constantly evolving environment of science, technology and healthcare. There are many risks when operating in these environments and industries, including research and development, intellectual property, regulatory compliance and clinical trial risks. CSL regularly reviews its enterprise risk profile to identify and assess material business risks. This includes external and emerging risks that may affect CSL’s global operations. These risks are actively monitored throughout the year and reassessed as additional information becomes available. The Board has established standing Committees with delegated authority as a mechanism for considering detailed issues including risks and, where appropriate, make recommendations for consideration by the Board. Managing risks includes both mitigating disruptive risks and seizing opportunities. CSL’s Global Enterprise Risk Management Framework is designed to provide robust risk oversight that is fit-for-purpose for both the operation of CSL’s business, and to support CSL’s strategy to deliver on its commitments to patients and public health. As part of CSL’s enterprise risk management process, the Board and management team have identified the key risks that are material to CSL. These material enterprise risks are described below along with an explanation of CSL’s approach to managing them in the context of delivering on CSL’s strategy. Key financial risks are set out in Note 11 (Financial Risk Management) to the Financial Statements. There are other risks for the CSL Behring, CSL Seqirus and CSL Vifor businesses, besides those detailed here or in the Financial Statements, which could also adversely affect CSL’s business and operations. However, such risks are not covered in this report as they are not considered material to CSL’s overall operations and financial position. The format of CSL’s Material Risks section has been refined in the current year to enhance readability and strengthen alignment with management reporting. This includes consolidating all material risks into a single section, incorporating risks that were previously discussed elsewhere in the Annual Report. As a result, additional risk categories are now presented; however, these do not represent new risks nor indicate any deterioration in CSL’s overall risk profile. Furthermore, not all listed material risks carry a high residual risk, with most reduced through effective management strategies and mitigation actions. 18 Performance
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