Risk Management is a key aspect of the “Corporate Governance Principles and Code of Conduct” which aims to improvise the governance practices across the Company’s activities.
OBJECTIVE
The main objective of this policy is to ensure sustainable business growth with stability and to promote a pro-active approach in reporting, evaluating and resolving risks associated with the business. In order to achieve the key objective, the policy establishes a structured and disciplined approach to Risk Management, in order to guide decisions on risk-related issues. Maintain high standards of Corporate Governance and public disclosure.
The components of Risk Management are, basically interrelated with each other, and namely the components are as follows:-
1. Risk Assessment
2. Risk Management
3. Risk Monitoring
2. Risk Management
3. Risk Monitoring
RISK ASSESSMENT
Risks are analysed, considering likelihood and impact, as a basis for determining how they should be managed. Risk Assessment consists of a detailed study of threats and vulnerability and resultant exposure to various risks. To meet the stated objectives, effective strategies for exploiting opportunities are to be evolved and as a part of this, key risks are identified and plans for managing the same are laid out.
RISK MANAGEMENT AND RISK MONITORING
In the management of Risk, the probability of risk assumption is estimated with available data and information and appropriate risk treatments worked out in the following areas:
(a) Economic Environment and Market conditions
(b) Fluctuations in Foreign Exchange
(c) Political Environment
(d) Competition
(e) Technological Obsolescence
(f) Financial Reporting Risks:
(g) Risk of Corporate accounting fraud:
(h) Legal Risk
(i) Compliance with Local Laws
(j) Quality and Project Management
(k) Environmental Risk Management
(b) Fluctuations in Foreign Exchange
(c) Political Environment
(d) Competition
(e) Technological Obsolescence
(f) Financial Reporting Risks:
(g) Risk of Corporate accounting fraud:
(h) Legal Risk
(i) Compliance with Local Laws
(j) Quality and Project Management
(k) Environmental Risk Management
IMPLEMENTATION
The Company is prone to inherent business risks. This document is intended to formalize a risk management policy, the objective of which shall be identification, evaluation, monitoring and minimization of identifiable risks.
The Board of Directors of the Company and the Audit Committee shall periodically review and evaluate the risk management system of the Company so that the management controls the risks through properly defined network.
APPLICATION
This policy applies to all areas of the Company’s operations.
ROLE OF THE BOARD
The Board will undertake the following actions to ensure risk is managed appropriately:
(1) The Board shall be responsible for framing, implementing and monitoring the risk management plan for the company.
(2) The Board shall define the roles and responsibilities of the Risk Management Committee and may delegate monitoring and reviewing of the risk management plan to the Committee and such other functions as it may deem fit.
(3) Ensure that the appropriate systems for risk management are in place.
(4) The independent directors shall help in bringing an independent judgment to bear on the Board’s deliberations on issues of risk management and satisfy themselves that the systems of risk management are robust and defensible;
(5) Participate in major decisions affecting the organization’s risk profile;
(6) Have an awareness of and continually monitor the management of strategic risks;
(7) Be satisfied that processes and controls are in place for managing less significant risks;
(8) Be satisfied that an appropriate accountability framework is working whereby any delegation of risk is documented and performance can be monitored accordingly;
(9) Ensure risk management is integrated into board reporting and annual reporting mechanisms;
(10) Convene any board-committees that are deemed necessary to ensure risk is adequately managed and resolved where possible
(2) The Board shall define the roles and responsibilities of the Risk Management Committee and may delegate monitoring and reviewing of the risk management plan to the Committee and such other functions as it may deem fit.
(3) Ensure that the appropriate systems for risk management are in place.
(4) The independent directors shall help in bringing an independent judgment to bear on the Board’s deliberations on issues of risk management and satisfy themselves that the systems of risk management are robust and defensible;
(5) Participate in major decisions affecting the organization’s risk profile;
(6) Have an awareness of and continually monitor the management of strategic risks;
(7) Be satisfied that processes and controls are in place for managing less significant risks;
(8) Be satisfied that an appropriate accountability framework is working whereby any delegation of risk is documented and performance can be monitored accordingly;
(9) Ensure risk management is integrated into board reporting and annual reporting mechanisms;
(10) Convene any board-committees that are deemed necessary to ensure risk is adequately managed and resolved where possible
REVIEW
This policy shall be reviewed at a minimum at least every year to ensure it meets the requirements of legislation & the needs of organization.