Approach to Risk Management
Over a number of years, the Company has matured its Risk Management framework which identifies, prioritises, manages, monitor and reports both, the key risks as well as the emerging risks - that can impact achievement of the organisation objectives. The Company's Risk Management framework is founded on sound organisation design principles and is enabled by effective review mechanism.
Our integrated ERM framework implemented across the organisation is developed based on the COSO and ISO 31000 standards and then suitably customised to address our unique business requirements.
Highlights of Enterprise Risk Management for FY 2020-21
Over a year ago, in March 2020, the WHO (World Health Organisation) declared COVID-19 a global pandemic. The unprecedented COVID-19 crisis stress-tested our Risk Management framework. The Company developed a resilient and adaptive Risk Management strategy. Key highlights of ERM are as follows:
- The Risk Management team, in close co-ordination with the Strategy team, developed an online “MRC COVID-19 model”, which would be updated in real-time, capturing pain points, concerns, short-term action plans, progress on those plans, evolving norms/situations etc.
- Reviews would be held frequently with the leadership team / business leaders on critical aspects related to safety, operations, sustainability, evolving government regulations, working capital management, cyber-incidents, HR initiatives and more.
- We recalibrated our Risk Registers with continuous inputs from operation teams, business leaders and Risk Management Committee members prioritising on following aspects i.e. Safety, sustainability, climate change, operational continuity, cash preservation, securing cash flow, cost improvement and wastage reduction, digital infrastructure, cyber security, evolving regulations, legal issues, contracts etc.
- Deployment of best global practices on risk management post benchmarking with global companies
- An ingrained process of learning while managing the unprecedented scenario supported the identification of risks and barriers
- Stress-testing and market intelligence of key commercial process prone to fraud
- Control awareness sessions on Internal Controls Framework, Anti-Fraud and Cyber Security
- Organising and celebrating Risk Awareness Week across India and global subsidiaries, a first in the history of Tata Chemicals to enhance risk understanding and promote Risk Management culture all across
