Page 108 - Tata_Chemicals_yearly-reports-2017-18

RISK MANAGEMENT: GOVERNANCE STRUCTURE
The risk management framework works at various levels across the enterprise. The key roles and responsibilities regarding risk management in
the Company are summarised as follows:

Board of Directors (’Board’) (I)

Risk Management Committee
(’RMC’) of Board (II)

Risk Management Group (’RMG’)
at Senior Management level (III)

RMG at Business Unit (’BU’)/
subsidiary level (IV)

Risk Owners (V)

Level Key roles and responsibilities

I. ʀ Reviewing and guiding risk policy of the Company
ʀ Ensuring the integrity of the systems for risk management

II. ʀ Overseeing the Company’s risk management process and controls
ʀ Setting strategic plans and objectives for risk management, risk philosophy and risk minimisation
ʀ Reviewing compliance with policies implemented by the Company
ʀ Reviewing risk assessment of the Company annually and exercising oversight of various risks including strategic risk, operational
risks, market risk, etc.
ʀ Oversight of the Company’s risk tolerance and risk appetite
ʀ Report and update to the Board periodically on various matters it has considered
III. ʀ Identification and review of enterprise risks from time to time, initiating mitigation actions, identifying owners and reviewing
progress
ʀ Identification and review of risk appetite and risk trigger (at Enterprise Level)
ʀ Implementation of Risk reduction strategies
ʀ Formulating and deploying Risk Management Policy
ʀ Deploying practices for identification, assessment, monitoring, mitigation and reporting of risks
ʀ Providing updates to RMC from time to time on the enterprise risks and actions taken
IV. ʀ Reviewing respective BU/Subsidiary risks from time to time, initiating mitigation actions, identifying owners and reviewing
progress
ʀ Identification and review of risk appetite and risk trigger (at BU/Subsidiary Level)
ʀ Implementation of risk reduction strategies
ʀ Deploying Risk Management Policy
ʀ Deploying practices for identification, assessment, monitoring, mitigation and reporting of risks
ʀ Providing updates to RMG and RMC level from time to time on the respective SBU risks and actions taken
V. ʀ Responsible for developing and acting on risk mitigation plan
ʀ Providing periodic updates to RMC on risks with mitigation plan

106 Annual Report 2017-18