Risk Culture and Management

Our Proactive & Efficient Risk Mitigation Approach

In our endeavour to proactively identify, investigate and assess risks and opportunities, we are focusing on the timely identification of potential risks. We put our efforts into moderating their impact through responsible mitigation. At Dalmia Bharat, we review our risk management policy and framework on a periodic basis to align the process with evolving regulatory requirements. This is also carried out to increase the maturity and resilience of our organisation’s mitigation mechanisms so that we can address the challenges of the uncertain business landscape. Recent changes in the framework that enhance the risk management process include:

• Anticipating and measuring emerging risks and opportunities

• Embedding risk-based decision-making and implementing mechanisms to reward best practices

• Integrating the ERM framework with ESG practices of the Group

• Extending risk management practices beyond risk mitigation and building contingency and business continuity mechanisms

Our Comprehensive Enterprise Risk Management Framework

We have institutionalized an Enterprise-wide Risk Management (ERM) Program and Framework to provide a comprehensive view of our risk exposures and to facilitate risk-informed decision-making in a highly volatile business environment. We have also developed a robust risk governance structure to enhance our risk maturity and enable greater oversight over the risk management process.

We are driving ERM across the organisation and for this, we’ve adopted a combination of a bottom-up and top-down approach. In fact, our ERM process is aligned with leading international standards such as COSO ERM 2017 and ISO 31000:2018. Our approach includes identification, regular assessment of risks, defining and monitoring of mitigation strategies by respective risk owners across operations and functions. Basis our six capitals, we have also defined our risk appetite with tolerance limits to assess the impact of the risks in achieving our strategic objectives. These serve as key considerations during decision-making.

The main purpose of setting up a robust ERM process is to monitor, manage and mitigate the risk of failure so that we can achieve our strategic objectives and explore opportunities in a risk-informed manner to protect and enhance value. We endeavour to integrate risk management with our business operations, improve organisational maturity and preparedness to manage unforeseen risks, and enhance our ability to respond to various crisis scenarios.

Risk management process under the ERM framework

Key risks to the business