The Company’s risk management framework is aligned with ISO 31000. Enterprise Risk Management (ERM) System of the Company supports the organisation’s objectives by addressing the full spectrum of its risks and managing the impact of those risks individually or combined as an inter-related risk portfolio. The ERM system aims to develop a ‘Risk intelligent culture’ within the Company to encourage risk informed business decision-making, as well as resilience to adverse environment, and to create awareness of opportunities in order to enhance the long-term stakeholder value.
The Risk Management Policy is the core of the ERM System, and is reviewed and approved by the Board. The risk management culture has grown and developed in line with the Company’s core objectives, and on account of it being aware and cautious about opportunities and threats. This Policy provides guidance for the management of the different business risks, encompassing the strategic risks, emerging risks & operational risks across the organisation. It focusses on ensuring that the risks are identified, evaluated and treated within a given timeframe on a regular basis.
The Risk Management Policy lays down guiding principles, policies, a risk organisation structure and MIS, incorporating the requirements of Corporate Governance, as well as some of the industry-best practices in order to manage risks. Pursuant to this policy, the Company presents an enterprise-wise approach to ensure that key aspects of risks that have an enterprise-wise impact are considered and contained in its conduct of business. This policy document also serves as a guideline for respective components of risks which have a common resonance across the Company.
Market risk, especially in the international space, and risk of technology obsolescence, including technology disruption, are perceived as major risks. In order to counter these, the Company has developed/is developing a range of enhanced efficient model turbines with optimal cost structure which will add value to the customer. Further, the Company is planning digital transformation to keep pace with emerging technology.
In addition, the Company is responsible for designing and implementation of sound Internal Financial Controls over Financial Reporting. The Company has laid down such procedure and periodically assesses its operational effectiveness by conducting reviews of various Risk Control Matrices. The Control System, and review thereof, provides reasonable assurance that the conduct of the business is operating in an orderly and efficient manner, including adherence to Company’s policies, safeguarding assets, and prevention and detection of frauds and errors, if any, as well as accuracy and completeness of accounting records and timely preparation of financial information.