Strategy of Business Risk/Opportunities Assessment & Management (BRM)
The Risk Management Committee of the Ambuja Board lays down the procedures for risk assessment and minimisation and the Board is responsible for framing, implementing and monitoring the risk management plan of the Company. The Committee reviewed the risk trend, exposure and potential impact analysis carried out by the Management. MD & CEO and CFO have confirmed that mitigation plans have been finalised and up to date, the owners have been identified and the progress of mitigation actions monitored. The Committee met once during the year.

The directors or the highest governance body of the Company also engage with the risk management process through bodies like the Risk Management Committee, CSR Committee & Compliance Committee. Ambuja has a well embedded business risk management (BRM) process for identifying risks and opportunities at corporate as well as operational levels. The overall objective is to improve awareness of the Company’s risk exposure and manage it appropriately. Materiality reviews are conducted in conjunction with the annual business planning cycle. BRM includes assessment of social, economic, and environmental risks. Risk assessment and Management policy support sustainable business modules for increased profitability. Our risk management approach incorporates sustainability; it provides Management with useful data to identify emerging issues and develope new and better products and processes. These help protect the Company’s reputation and improve shareholder value. Sustainability gives us an opportunity to look at risks in a broader rather than a traditional risk management framework; this entails looking beyond economic, strategic, and operational factors and including 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 sustainability concerns for our industry include climate change, social justice, depletion of non-renewable resources, brand damage (including boycotts), shareholder actions 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 the most current corporate programmes. Examples include energy consumption, emissions of greenhouse gases, water use, waste generation/ consumption, AFR etc. At Ambuja, we address many aspects of sustainability, as it improves business efficiency and boosts profits. Efficient productivity includes reduced material requirements, reduced energy for production, lowering of toxic gas emission, improving recyclability, improving the durability & reliability of products, and maximising the use of renewable resources. Implementation of a sustainability programme starts with an understanding of corporate and regional principles and values. The fundamental values that unify an entity’s actions are its way of thinking and its people; these are derived from where the Company has been, where it is today and its quest to continue delivering value into the future. The first step towards implementation is risks/opportunities assessment, where all the possible risks/opportunities are identified and then mapped. The next step is prioritising the risks/opportunities and formulation of action plans which then take form of projects. One such example is the ongoing ‘Geocycle’ Project.