Intergrated Annual Report 2023-24
Enterprise risk management (ERM) at Atul involves identifying, evaluating, prioritising, categorising, mitigating, monitoring and reporting principal risks through bottom-up and top-down approaches. The bottom-up approach engages businesses and cross-functional teams in risk identification and mitigation planning, while the top-down approach ensures comprehensive framework effectiveness and long-term risk strategising. Risks are categorised into major themes to prioritise their mitigation strategies, overseen by an ERM council of Senior Management officials and the Risk Management Committee of the Board.
Aims at discovering crucial risks and map out the root causes or contributing factors.
Aims at defining risk priorities and ownership of essential risks, assessing differing impacts considering risk appetite and existing mitigation measures.
Aims at understanding the diverse impact of risks and the degree of influence on their causes. It involves recognising various processes, identifying the root causes and gaining a clear understanding of risk associations.
Aims at addressing vital risks to limit their impact to a manageable level (within the stated risk appetite). It requires explicit action planning, assigning responsibilities and setting milestones.
Aims at providing the Audit Committee and the Board with regular information on risk profile changes and mitigation strategies.