The Company has in place a Risk Management framework to identify, evaluate and monitor business risks and challenges across the Company. The Risk Management Policy, pursuant to Section 134 of the Act, has been adopted based on this framework. The Risk Management Policy provides for creation of a Risk Register, identification of risks and formulating mitigation plans.
The Board of Directors of your Company has formed a Risk Management Committee to frame, implement and monitor the Risk Management plan for the Company. The Committee is responsible for monitoring and reviewing the Risk Management plan and ensuring its effectiveness. The details about the Risk Management Committee have been provided in the Corporate Governance section of the Annual Report.
The enterprise risks for the Company are identified by the respective Risk Managers and presented to the Risk Management Committee for review. The Committee evaluates the performance of the Company against perceived risks, develops approaches to classify potential and evolving challenges that may adversely impact the overall risk exposure of the Company. The major risks identified by the businesses and functions are systematically addressed through mitigating actions on a continuing basis.
The Risk Register gets updated periodically, to ensure that the risks remain relevant at any point in time and corresponding mitigation measures are effective. This provides a proactive and value adding review process which enables maintaining the risk profile at an acceptable level in a rapidly changing environment.
The Audit Committee has additional oversight in the area of financial risks and controls.