Key observations:

As aligned with the need to recognize “the specific risks and opportunities that affect the organization’s ability to create value over the short, medium and long term, and how is the organization dealing with them” (International <IR> Framework, para. 4.23) in its 2016 Annual Report Novo Nordisk clearly identifies the main risks that have affected its ability to create long-term value. The specific risks that have influenced the 2016 performance, namely market risks, R&D risks, supply, quality and product safety risks and legal risks are illustrated through narratives. In addition, long-term risks related to global development and long-term prosperity are also briefly discussed. Then, an overview on the risk management policy implemented by the organization as well as on the risk profile and the actions undertaken to mitigate these risks and the enterprise risk management adopted is presented. A final table concisely summarises the eight key risks, the impact of these and the actions taken by management to mitigate these risks.

Cross-references to other sections of the annual report and to other reports (such as the Communication on Progress report) enhance the connectivity of information and the readability of the annual report.