Page 108 - Tata_Chemicals_yearly-reports-2020-2021

Integrated Annual Report 2020-21

and Process Management. For the Company, a global Overview
organisation that has its manufacturing operations spread The Company has a well-defined Enterprise Risk Management
across four continents, with diverse business segments and (‘ERM’) framework in place. The ERM framework has matured
employees from different cultures, TBEM serves as a platform over several years. It is founded on sound organisation design
to establish a common standard of excellence. The Company principles and is enabled by an effective review mechanism.
participated in the Tata Group level TBEM assessments in
2019, which provided valuable inputs into the strengths and Risks are identified proactively considering a balanced
areas of focus for the Company. This helps the Company to ‘bottom-up’ and ‘top-down’ approach considering inputs
strengthen the culture of excellence and progress towards from exogenous as well as internal factors. Risk mitigation
becoming a world-class organisation. plans are devised to mitigate the identified risks. Mitigation
plans with identified owners are set against target dates
14. Internal Controls and the progress of mitigation actions are monitored and
reviewed.
The Company has an independent Internal Audit function
with a well-established risk management framework. The The ERM process framework is based on international
scope and authority of the Internal Audit function are derived standards including ISO 31000 and the Committee of
from the Internal Audit Charter approved by the Audit Sponsoring Organisations of the Treadway Commission, with
Committee. The Company has engaged a reputable external inputs drawn from the best practices of leading companies
firm to support the Internal Audit function for carrying out across industries but tailored to suit the Company's business
the Internal Audit reviews. needs. Risk Management and Internal Audit functions
complement each other at the Company. The Company
Reviews are conducted on an ongoing basis, based on a developed a resilient and adaptive Risk Management
comprehensive risk-based audit plan, which is approved strategy to address the unprecedented Covid-19 scenario.
by the Audit Committee at the beginning of each year.
Considering the Covid-19 challenges, the internal audit plan Risk Management: Governance Structure
was refreshed to cover and focus on emerging risks in the The Company has constituted a robust governance structure
area of cyber security, business continuity, stress testing of consisting of 5 levels thereby ensuring both bottom-up and
processes prone to fraud, etc. Considering the new normal, top-down approaches.
the reviews were conducted remotely leveraging on
technology. It constituted the Risk Management Committee (‘RMC’)
to oversee the risk efforts in the Company. The RMC meets
The Audit Committee meets every quarter to review quarterly to review key risks and assess the status of mitigation
and discuss the various Internal Audit reports and follow measures. The Company's approach to risk management is
up action plans of past significant audit issues and designed to provide reasonable assurance that its assets are
compliance with the audit plan. The Chairperson of the safeguarded; the risks facing the business are being assessed
Audit Committee has periodic one-on-one meetings and mitigated.
with the Internal Auditor & Controller – Risk to discuss any
key concerns. The risk management framework is described below:

Board of Directors
15. Risk Management Framework
The following section discusses various dimensions of the Risk Management Committee
Company’s ERM system. The risk-related information outlined of the Board
in this section is not exhaustive and is for information
purposes only. The discussion may contain statements that Risk Management Group (RMG)
may be forward-looking in nature. at Senior Leadership Level

The Company’s business model is subject to uncertainties
that may cause actual results to differ materially from those RMG at Business Unit Level/
Subsidiary Level
reflected in any forward-looking statements.
Risk Owners

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