Risk management

The Committee recommends:

1. Identification of risks
The Committee recommends that the board and Executive Management, when formulating the company's strategy and overall goals, identify the greatest business risks involved in achieving such strategy and goals.

This is what Novozymes does:

Novozymes complies with this recommendation.

2. Plan for risk management
The Committee recommends that Executive Management prepares a plan for the company's risk management on the basis of the risks identified and submit this plan to the board for approval, and that Executive Management regularly reports to the board to allow the latter to systematically follow the trends in significant risk areas.

This is what Novozymes does:

Novozymes complies with this recommendation. At board meetings Executive Management reports currently to the board on the status of major risk factors. Afterwards necessary precautions are discussed and evaluated among the board and Executive Management. This applies to strategic, organisational, business and other risk factors of major character.

3. Openness regarding risk management
The Committee recommends that the company's annual report includes information about the company's risk management activities.

This is what Novozymes does:

Novozymes complies with this recommendation.