Page 27 - TCE Annual Report 2024-2025

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Strategic Insights
Enterprise Risk
Management (ERM)

In today’s increasingly interconnected and volatile global landscape, businesses are facing an
unprecedented array of risks. The environment is shaped by uncertainties and challenges ranging
from United States-imposed tariffs and retaliatory measures, geopolitics, wars and tensions,
evolving trade partnerships, policy uncertainty, competition for resources, cyber threats, climate-
related disruptions, rising protectionist measures, as well as complex and dynamic regulatory
environments. These factors are putting significant strain on globally integrated businesses. In
response, countries are actively working to safeguard and diversify their supply chains, particularly
in critical sectors such as energy, semiconductors, food and minerals.

Amid this global slowdown, India stands out as one of the The risk management system at both bid and execution
fastest-growing emerging economies, supported by stable stages captures and shares risk data for bids and projects
and business-friendly government policies. Many countries through various dashboards and reports. These tools
are strengthening their trade partnerships with India, support risk reviews, mitigation, monitoring, and reporting.
recognising the nation as a key hub in Asia with immense Key parameters tracked include risk scores, high-risk bids or
potential for growth, investment and opportunity. projects, and corresponding mitigation plans.
Even though the global market environment is Measures and initiatives to deal with key risks include
expected to be volatile, it is also expected to present the following:
numerous opportunities. The level of risks and • A detailed review of bids based on threshold values
complexity may be high due to increased costs at the bid stage and regular project reviews of key
and global uncertainties. The need of the hour is to projects from each Business Unit
assess and select opportunities that align with the
organisation’s strategy and risk appetite, ensuring that • Providing risk inputs to strategy, covering business
growth is sustainable in the long term. Organisations and sector-wise updates in terms of risks and
that embed risk thinking into their core strategy are opportunities
better equipped to pivot quickly, maintain stakeholder • A risk challenge to the Annual Business Plan, taking
trust and capture opportunities even in turbulent times. into account potential risks that may impact the plan
As global uncertainties continue to evolve, robust and and estimating likely effects in terms of optimistic,
agile risk management is no longer merely a protective pessimistic and base-case scenarios
measure but a competitive differentiator.
• Portfolio analysis of sectors within a Business Unit
To reduce or mitigate the impact of potential risks, both to understand the balance between risk and return
internal and external, on the company’s performance, the potential
company has developed an Enterprise Risk Management
framework and process aligned with the business value • Preparation and sharing of country profiles
chain and best practice recommendations such as ISO with Business Units and the International Sales
31000 and the COSO framework. The company’s risk and Marketing Group, covering both risks and
management procedure captures and evaluates risks opportunities for informed decision-making
throughout the entire lifecycle of a project, from the bid • Revision and update of Business Unit and functional
stage through to project closure. risk registers

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