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.
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.
CONSTITUTION OF RISK MANAGEMENT COMMITTEE:
Risk Management Committee has been constituted by the company consisting of following
1. Mr. Harishchandra Prasad – Chairman
2. Mr. Shanti Sree Bolleni – Member
3. Mr. Chetan Rathi – Member
The Board has define the roles & responsibilities of the Risk Management Committee
& may delegate monitoring & reviewing of the risk management plan to the Committee
& such other functions as it may deem fit.
ROLE OF THE BOARD
The Board will undertake the following actions to ensure risk is managed appropriately
- The Board shall be responsible for framing, implementing and monitoring the risk
management plan for the company.
- The Board shall define the roles and responsibilities of the Risk Management Committee
and may delegate monitoring and reviewing of the risk management plan to the Committee
and such other functions as it may deem fit.
- Ensure that the appropriate systems for risk management are in place.
The independent directors shall help in bringing an independent judgment to bear
on the Board’s deliberations on issues of risk management and satisfy themselves
that the systems of risk management are robust and defensible;
- Participate in major decisions affecting the organization’s risk profile;
- Have an awareness of and continually monitor the management of strategic risks;
- Be satisfied that processes and controls are in place for managing less significant
- Be satisfied that an appropriate accountability framework is working whereby any
delegation of risk is documented and performance can be monitored accordingly;
- Ensure risk management is integrated into board reporting and annual reporting mechanisms;
- Convene any board-committees that are deemed necessary to ensure risk is adequately
managed and resolved where possible.
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.
This policy shall be reviewed at a minimum at least every year to ensure it meets
the requirements of legislation & the needs of organization.