For Pharma-Bio Serv it is important to prevent, mitigate or recover from any damage a potential risk may bring to our company.  It is equally important to consider risks that are linked to short or long term success.  There is a direct link between risk intelligence and shareholder value.  Our company will implement a risk intelligence culture where our business fosters innovation and expansion, yet guided by risk management practices and controls to guarantee our sustainability and long term success.  Risk intelligence will be integrated into all aspects that impact our business, from industry trends, competition, laws and regulations, through customer service, technology, finance, human capital, business plan and operations management.

Pharma-Bio Serv recognizes that risk management is an integral part of good management practices.  We are committed to achieving best practice in risk management, and to establishing an organizational culture that ensures risk management is embedded in all company activities and business processes.  We will evaluate potential benefits alongside potential risks as a routine part of our administrative and business planning processes.

Risk Management is just responsible behavior combined with right controls.  It is the willingness of Pharma-Bio Serv to provide a safe working environment, planning carefully all aspects of our programs, abiding by the laws of the areas where we do business and our community.  In other words, it is the basic respect for our Company, Shareholders, Employees, Clients, Property, Laws, and Community.

Pharma-Bio Serv Risk Management Policy includes, but is not limited to, standards addressing:

• Financial Management
• Physical Infrastructure Maintenance
• Workplace Safety and Health
• International Regulatory Agencies
• Human Capital
• Legal and Regulatory
• Corporate Strategy
• Business continuity and Sustainability
• Sarbanes Oxley
• Industry Trends and Competition

Risks will be assessed and managed at the operational level in accordance with this Policy and with risk management processes established by the company.