Why Pharma Boards Confuse Scenario Models With Risk Measurements
Boards in the pharmaceutical industry are misinterpreting scenario models as concrete risk measurements, leading to confusion and potentially flawed decision-making. A £312 million figure, representing a modeled future loss from a third-party clinical platform breach under specific conditions, was presented as a direct exposure. This conflation of conditional future scenarios with present-day measured costs obscures the actual financial impact and hinders effective risk assessment. AI
IMPACT This article discusses risk management in pharma and does not directly relate to AI.