Page 22 - Tata_Chemicals_yearly-reports-2020-2021

Integrated Report Statutory Reports Financial Statements
Integrated Annual Report 2020-21 Risk Management 60-146 147-300

Risk Management Highlights of enterprise Risk Management Safety, sustainability, climate change, operational continuity,
for FY 2020-21
cash preservation, securing cash flow, cost improvement and
Over a year ago, in March 2020, the WHO (World Health wastage reduction, digital infrastructure, cyber security, evolving
Organisation) declared Covid-19 a global pandemic. The regulations, legal issues, contracts etc.
The risk-related information outlined in this section is not unprecedented Covid-19 crisis stress-tested our Risk Management Deployment of best global practices on risk management post
exhaustive and is for information purposes only. This section framework. The Company developed a resilient and adaptive Risk benchmarking with global companies
lists forward-looking statements that may involve risks and Management strategy. Key highlights of ERM are as follows: An ingrained process of learning while managing the
uncertainties. Our actual results including business’ operational The Risk Management team, in close co-ordination with the unprecedented scenario supported the identification of risks
performance could differ materially on account of risks and Strategy team, developed an online “MRC Covid-19 model”, and barriers
uncertainties not currently envisaged or by risks that we which would be updated in real-time, capturing pain points,
currently believe are not material. Readers are also advised to concerns, short-term action plans, progress on those plans, stress-testing and market intelligence of key commercial
exercise their own judgement in assessing the risks associated evolving norms/situations etc. process prone to fraud
with the Company.
Reviews would be held frequently with the leadership team / Control awareness sessions on Internal Controls Framework,
business leaders on critical aspects related to safety, operations, Anti-Fraud and Cyber Security
Risk mapping sustainability, evolving government regulations, working capital organising and celebrating Risk Awareness Week across
management, cyber-incidents, HR initiatives and more. India and global subsidiaries, a first in the history of Tata
Approach to Risk We recalibrated our Risk Registers with continuous inputs Chemicals to enhance risk understanding and promote Risk
4 Management Management culture all across
1 from operation teams, business leaders and Risk Management
Over a number of years, the Company Committee members prioritising on following aspects i.e.
6
has matured its Risk Management
framework which identifies, prioritises,
manages, monitor and reports both, the
key risks as well as the emerging risks
- that can impact achievement of the Information regarding the Company's key risks and their mitigation strategies are as follows:
2 organisation objectives. The Company's
Impact 7 8 Risk Management framework is sustainability Risks
founded on sound organisation design
3
principles and is enabled by effective Mitigation
review mechanism.
Climate adaptation study done for Mithapur
Our integrated ERM framework Signed SBTi and taken absolute carbon emission reduction target
implemented across the organisation 1. sustainability Risks Emphasis on Biodiversity, Climate Change and Circular Economy
is developed based on the COSO and Failure to respond to sustainability Dedicated investment to appropriately balance environmental targets and
5 ISO 31000 standards and then suitably and climate change related risks long-term, sustainable business growth
customised to address our unique
business requirements. Regular monitoring of sustainability risks against business unit sustainability
targets
Linkage to Capital Board Level quarterly review of Sustainability Roadmap and Environmental
Low Medium High Natural Capital Compliance Status
Probability Social and Relationship Capital The Company is a signatory to Responsible Care as well as CORE which guides
the Company
1. Sustainability Risk Committed to EPR compliance on plastic waste as per EPR action plan
2. Digitalisation Risk Engaging with regulatory authorities, assisting the community on various
3. Product Portfolio Risk Covid-related initiatives including funding support to government,
4. Cyber Risk manufacture and distribution of hand sanitisers and Sodium Hypochlorite,
5. Capital Allocation Risk
6. Debt & Unfunded Pension Risk production and distribution of masks, earmarking isolation ward at Mithapur
7. Regulatory Risk with around 100 beds
8. Safety Risk

20 21