Page 165 - Tata Chemical Annual Report_2022-2023

Integrated Annual Report 2022-23 01-83 84-192 193-365
Integrated Report Statutory Reports Financial Statements
Management Discussion
& Analysis

The key roles and responsibilities regarding risk management in 3. Risk Management Group at Senior Leadership Level
the Company are summarised as follows: Risk Categories
• Identification and review of enterprise risks from
1. Board of Directors time to time, initiating mitigation actions, identifying The following categories of risks have been considered in the Risk Management Framework:
• Reviewing and guiding Risk Policy of the Company owners and reviewing progress
• Ensuring the integrity of the systems for risk • Identification and review of risk appetite and risk Sustainability 02 Strategic
management trigger (at Enterprise Level) Risk 01 Risk
• Implementation of Risk reduction strategies
2. Risk Management Committee of the Board
• Formulating and deploying Risk Management Policy
• To formulate a detailed risk management policy
which shall include: • Deploying practices for identification, assessment, 03
o A framework for identification of internal and monitoring, mitigation and reporting of risks Reputational Risk Operational
external risks, specifically faced by the Company, • Providing updates to RMC from time to time on the Risk Categories Risk
in particular, including financial, operational, enterprise risks and actions taken 06
sectoral, sustainability (particularly ESG related
risks), information, cyber security risks or 4. Risk Management Group at Business Unit (BU) Level/
any other risk as may be determined by the Subsidiary Level
Committee 04
o Measures for risk mitigation including systems • Reviewing respective BU/Subsidiary risks from time to Regulatory and 05 Financial
and processes for internal control of identified time, initiating mitigation actions, identifying owners Policy Risk Risk
risks and reviewing progress
o Business continuity plan
• Identification and review of risk appetite and risk
• To ensure that appropriate methodology, processes trigger (at BU/Subsidiary Level)
and systems are in place to monitor and evaluate risks • Implementation of risk reduction strategies
associated with the business of the Company
• Deploying Risk Management Policy • Sustainability Risks are the risks arising out of adverse impacts that the business activities have on environment (planet) and
• To monitor and oversee implementation of the communities (people).
risk management policy, including evaluating the • Deploying practices for identification, assessment,
adequacy of risk management systems monitoring, mitigation and reporting of risks • Strategic Risks include the range of external events and trends (like Government policy) that can adversely impact the Company’s
strategic growth trajectory and destroy stakeholder value. They also include the risks arising out of the choices the Company
• To periodically review the risk management policy, at • Providing updates to TCL Management Committee has made in defining its strategy.
least once in two years by considering the changing (RMG) and RMC level from time to time on the
industry dynamics and evolving complexity respective Business / Subsidiary level risks and actions • Operational Risks are those risks that are associated with operational uncertainties, including failure in critical equipment,
taken attrition, loss of data from cyber attacks, etc.
• To keep the Board of Directors informed about
the nature and content of its discussions, 5. Risk Owners • Financial Risks are risks faced by the organisation in terms of internal systems, planning and reporting.
recommendations and actions to be taken
• Responsible for developing and acting on the risk • Regulatory and Policy Risks are risks on account of inadequate compliance of regulations, contractual obligations and intellectual
• The appointment, removal and terms of remuneration mitigation plan property violations, leading to litigation and loss of reputation.
of the Chief Risk Officer (if any) shall be subject to
review by the Risk Management Committee • Providing periodic updates to RMC on risks with the • Reputational Risks include a range of events that creates a mismatch between stakeholders’ expectations and their perceptions
mitigation plan of the Company’s performance around those expectations.

For more details on key risks and their mitigation plans, please refer to page no. 50 of this Integrated Annual Report.
Cautionary Statement
Statements in the Management Discussion & 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.

162 163