Page 124 - Tata_Chemicals_yearly-reports-2019-20

Risk Categories
the following broad categories of risks have been considered in the risk Management Framework:

Strategic
Risk

Financial Reputational
Risk Risk
Risk
Categories

Regulatory
and Operational
Compliance Risk
Risk

• Strategic Risk includes the range of external events and trends (like government policy) that can adversely impact the Company’s
strategic growth trajectory and destroy stakeholder value. It also includes the risks arising out of the choices the Company has made
in defining its strategy.
• Reputational Risk includes range of events that creates a mismatch between stakeholders’ expectations and their perceptions of
the Company’s performance around those expectations.

• Operational Risks are those risks which are associated with operational uncertainties including failure in critical equipment, attrition,
etc.
• Regulatory and Compliance Risk are risks on account of inadequate compliance of regulations, contractual obligations and
intellectual property violations leading to litigation and loss of reputation.

• Financial Risk are risks faced by the organisation in terms of internal systems, planning and reporting.

Cautionary Statement
Statements in the Management Discussion and Analysis describing the objectives, projections, estimates and expectations of the Company, its
direct and indirect subsidiaries and its associates, may be ‘forward-looking statements’ within the meaning of applicable laws and regulations.
Actual results might differ substantially or materially from those expressed or implied. Important factors that could make a difference to the
Company’s operations include, among others, economic conditions affecting demand/supply, price conditions in the domestic and overseas
markets in which the Company operates, changes in the Government regulations, tax laws and other statutes and incidental factors.

122 I Integrated annual report 2019-20