Strategy of Business Risk/Opportunities Assessment and Management (BRM)
Ambuja Cements has a well embedded business risk management process for identifying risks and opportunities on corporate as well as operational levels. The overall objective is to improve awareness of the company’s risk exposure and appropriately manage it. Materiality reviews are being conducted in conjunction with the annual business planning cycle. |
Risk assessment and management
policy support the sustainable business
module for increased profitability. Our
risk management approach incorporates
sustainability and provides management
with useful data for identifying emerging
issues and developing new and better
products and processes that help protect
corporate reputation and improve
shareholder value.
Sustainability gives us an opportunity to look at risks in a broader than a traditional risk management framework, which is to look beyond economic, strategic and operational factors and to include social and environmental considerations, sustainability allows corporations to consider emerging risk areas and to look for opportunities presented by risks that are overlooked by other analytical and systems-driven approaches. A more holistic point of view assures sound financial management, ethical corporate governance and transparency with respect to information provided to employees and other stakeholders. |
Examples of emerging issues of concern
in the sustainability area for our
industry include climate change, social
justice, depletion of non-renewable
resources, brand damage (including
boycotts), shareholder action s related
to sustainability issues and disclosure of
historic environmental liabilities.
Sustainability risk management also requires the evaluation of many aspects of the entity’s operations that are not part of most current corporate programs. Examples include energy consumption, emissions of gree house gases, water use and waste generation/ consumption, AFR etc. At Ambuja, we address many aspects of sustainability, as it helps in bringing in business efficiency which boosts profits. Efficient productivity includes reduced material requirements, reduced energy for production, reducing the toxic gas emission, improving recyclability, improving the durability and reliability of products, and maximizing the use of renewable resources. |
Implementation of a sustainability
program starts with an understanding
of corporate and regional principles and
values. The fundamental values that unify
an entity’s actions are a way of thinking
about the work and the people that are
derived from where the company has
been, where it is today and its quest to
continue delivering value into the future.
1st step towards implementation is risk/ opportunities assessment, where all the possible risks/opportunities are identified and then mapped. This is done with the help of the matrix, (Exhibit 1) which is designed to illustrate which sustainable development issues have the highest importance or significance to:
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Ambuja Cements Limited |