Page 56 - Tata Chemical Annual Report_2022-2023
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Integrated Annual Report 2022-23 01-83 84-192 193-365
Integrated Report Statutory Reports Financial Statements
Managing Risk and Ensuring
Business Resilience
High energy costs risk & supply chain constraints risk Regulatory and Policy risks
High energy costs (high prices of energy sources like oil, natural Impact (2) X Probability (2) Policy changes which could impact the Company’s operations at large Impact (2) X Probability (1)
gas, coal will impact variable costs) & supply chain constraints Opportunities arising Oversight
(higher freight costs and longer delivery cycles) from risks Audit Committee Linkage to Capital Oversight
Social and
Linkage to Capital Diversify the supply Risk Management Relationship Capital Manufacturing Capital Audit Committee
Risk Management Committee
sources for each critical Committee
Natural Capital Manufactured Capital raw material Safety, Health, Intellectual Capital Natural Capital Safety, Health, Environment &
Long-term contract of Environment & Sustainability Committee
affreightment Sustainability Committee Mitigation plans
Mitigation plans Monitoring of compliances through an authorities and attendance at seminars, Providing inputs in policy formulation
High energy costs Cover optimal stock volumes and and to reduce the number of vessels e-enabled compliance management memberships of government and and devising the policies beneficial
Diversify the energy sourcing in closed contracts to ensure stability and required framework which is used in periodic industry bodies, specifically those that for the industry and the country
take industry voice (thereby Company's
at large; understanding upcoming
reporting and reviews at leadership
addition to current sources, to improve flexibility Enter into annual COA (Contract of forums; senior leaders’ active participation voice) to the ministries who finally issue policy changes with an endeavour to
sourcing flexibility Continue with commodity hedging / Affreightment) for predictable and in various committees and sub regulations/notifications mitigate emerging risks
Explore/maximise the use of alternate advance fixing of prices at all locations steady requirements committees formed by various bodies to Proactive meetings and dialogues with Keeping track of the draft
energy sources, e.g. anthracite coal Supply chain constraints Maintain adequate inventory levels ensure adequate early knowledge and industry and ministry to put forward notifications and proposals, both
fines, coke breeze, biomass briquettes to avoid supply chain disruptions policy advocacy views of the Company for consideration from the government and/or industry
etc., in power and cement plants to Shift the import material flow at Ongoing dialogue, liaison meetings in formulating the rules and regulations recommendations, as well as risks that
reduce dependency on fossil fuels Mithapur to bigger vessels, i.e. and conversations with regulatory may arise by way of a structured process
Panamax / Cape vessels, for thermal
coal, in order to optimise freight cost
Reputational risks
Financial risks
Safety risk
International debt risk
Ensuring containment of safety hazards (behaviour, workplace, Impact (2) X Probability (2)
Managing international debt & tightening interest rates Impact (2) X Probability (2) process & product)
Linkage to Capital Oversight Linkage to Capital Oversight
Audit Committee Audit Committee
Financial Capital Risk Management Committee
Risk Management Committee Human Capital
Safety, Health, Environment & Sustainability Committee
Mitigation plans Mitigation plans
Managing debt
Key safety risks are included in the Table top drill exercise for emergency long-term Strategic Plan for Asset
Regular review of the Company’s debt profile Enterprise Risk Register with risk owners preparedness Management
Re-alignment of the quantum, repayment, pre-payment and need for refinance, in line with overall long-term business plans / for implementing the mitigation plans; Member of Nicer globe initiative for Hazards are identified using
strategy of the Company safety risks are reviewed periodically by addressing transportation-related techniques such as Job Safety
the Risk Management Group of Senior
Maximise free cash flows to repay debt Leadership and the Risk Management hazards Analysis (JSA), Hazard and Operability
Study (HAZOP), Hazard Identification
Committee Various safety improvement initiatives, and Risk Analysis (HIRA), What-if-
covering behavioural safety, structural
Unfunded pension risk Key risks associated with safety which safety, mine safety and process safety & Analysis, Failure Mode Effect Analysis,
can lead to emergencies and business risk management (PSRM), management etc., and addressed by following
Unfunded pension liabilities of overseas subsidiaries Impact (2) X Probability (3) continuity issues are addressed through of hazardous chemicals, workplace hierarchy of risk control; E-enabled
(UK Natrium Holdings) Emergency Preparedness Plan; on-site environment improvement, preventive portal ‘MDO’ is implemented across
and off-site emergency plans are in place maintenance, and aspects are the operations to capture near-misses
Linkage to Capital Oversight in case of failure to localise containment continuously evaluated for effectiveness and unsafe conditions
of hazards
Audit Committee Mitigation plans for key risks are Migrated to ISO tankers with the GPS
Financial Capital Achieve Zero Harm by following world- system for transporting bromine and
Risk Management Committee addressed through Annual Business
class standards of SHE management Plan with proper planning and chlorine as well as for product safety
Mitigation plans systems, responsible care initiatives, good allocation of resources; risks arising and transportation of hazardous
chemicals
maintenance practices, enhancement
The pension schemes are closed to further accruals (in the UK) strategies for the environment, and out of old infrastructure and assets
are addressed systematically through
Utilising hedging and investment strategies, as appropriate, to manage economic risks including inflation prevention of pollution
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