Risk Management is a key aspect of the “Corporate Governance Principles and Code
of Conduct” which aims to improvise the governance practices across the Company’s
activities. Risk management policy and processes will enable the Company to proactively
manage uncertainty and changes in the internal and external environment to limit
negative impacts and capitalize on opportunities.
This policy applies to all areas of the Company’s operations.
OBJECTIVE & PURPOSE OF POLICY
The main objective of this policy is to ensure sustainable business growth with
stability and to promote a pro-active approach in reporting, evaluating and resolving
risks associated with the business. In order to achieve the key objective, the policy
establishes a structured and disciplined approach to Risk Management, in order to
guide decisions on risk related issues.
The specific objectives of the Risk Management Policy are
1. To ensure that all the current and future material risk exposures of the company
are identified, assessed, quantified, appropriately mitigated, minimized and managed
i.e to ensure adequate systems for risk management.
2. To establish a framework for the company’s risk management process and to ensure
3. To enable compliance with appropriate regulations, wherever applicable, through
the adoption of best practices.
4.To assure business growth with financial stability.
BACK GROUND AND IMPLEMENTATION:
The Company is prone to inherent business risks. This document is intended to formalize
a risk management policy, the objective of which shall be identification, evaluation,
monitoring and minimization of identifiable risks.
The Board of Directors of the Company and the Audit Committee shall periodically
review and evaluate the risk management system of the Company so that the management
controls the risks through properly defined network.
Head of Departments shall be responsible for implementation of the risk management
system as may be applicable to their respective areas of functioning and report
to the Board and Audit Committee.
DISCLOSURE IN BOARD’S REPORT:
Board of Directors shall include a statement indicating development and implementation
of a risk management policy for the company including identification therein of
elements of risk, if any, which in the opinion of the Board may threaten the existence
of the company.