Page 33 - Tata_Chemicals_yearly-reports-2021-22

01 INTEGRATED 73 STATUTORY 178 FINANCIAL
Integrated Annual Report 2021-22 REPORT REPORTS STATEMENTS
Risk Management

Risk Management Sr. Key Risks Risk Description Change in rating from FY 2020-21
No. Probability Impact

1. Sustainability risk Failure to address climate change related risks with an aim to No Change No Change
reduce carbon emissions, be a pioneer in circular economy
The risk-related information Risk mapping and preserve nature and bio diversity
outlined in this section is not High 2. Digitalisation risk Failure to embrace digitalisation as a key lever of Business No Change No Change
exhaustive and is for information Growth
purposes only. This section lists 1 3 4 3. Cyber risk Loss of data and compromised operations resulting from No Change No Change
forward-looking statements 7 Cyber attacks
that may involve risks and 4. High energy costs risk High prices of energy sources like Oil, Natural Gas, Coal New Risk
uncertainties. Our actual results impacting variable costs
including business operational 2 5. Supply chain Higher freight costs and longer delivery cycles New Risk
constraints risk
performance could differ 8 6
materially on account of risks Impact Medium 5 9 6. Talent risk Upskilling/reskilling of employees to contain attrition of talent New Risk
and uncertainties not currently 7. Debt & Unfunded Managing debt & unfunded pension liabilities of overseas No Change No Change
Pension risk
envisaged or by risks that we subsidiaries
currently believe are not material. 8. Regulatory & Policy risk Policy changes which could impact the Company’s No Change No Change
operations at large
Readers are also advised to Safety risk
exercise their own judgement 9. Failure to ensure containment of safety hazards (Behaviour, No Change No Change
Workplace, Process and Product) including containment of
in assessing the risks associated infectious diseases/impact of COVID-19
with the Company. Low
Low Medium High Approach to risk management Highlights of Enterprise Risk Risk management is embedded in the
Probability Over a number of years, the Company’s Management for FY 2021-22 day-to-day operations of each entity
Risk Management Framework has matured. In the context of: and operational managers are expected
The Framework identifies, prioritises, global economic and political to anticipate and react rapidly when
manages, monitors and reports both uncertainty circumstances change.
the key risks as well as the emerging Apart from Risk Management Committee
risks - that can impact achievement volatile growth dynamics and (RMC) and Senior Management providing
of your organisation’s objectives. The market cycles inputs on risks, continuous scanning of
Company’s Risk Management Framework increased sensitivity external environment is done to identify
is founded on sound organisation design expectations related to climate change new risks by the risk management
principles and is enabled by effective and team which are validated by the Senior
review mechanism. Risk Management at the imperatives of energy transition Management and RMC.
Tata Chemicals forms an integral part of
Management focus. We believe that effectively monitoring Deployment of best global practices on
and managing risks is key to achieving the risk management post benchmarking with
The Company has adopted an integrated Company’s strategic objectives. global companies.
Enterprise Risk Management (ERM)
framework which has been implemented Reviews held frequently with the An exercise to develop Business Continuity
across the organisation. It is developed by leadership team / business leaders on Plans (BCP) for TCL India’s major plant has
incorporating the best practices based on critical aspects related to safety, operations, recently been concluded. Development
COSO and ISO 31000 frameworks, suitably sustainability, evolving government of BCP at TCL India’s other plants and
customised to address the Company’s regulations, working capital management, corporate functions is also under progress.
unique business requirements. cyber-incidents, HR initiatives, etc.

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