Page 30 - TCE Annual Report 2024-2025

Overview Leadership Messages Governance Strategic Insights Business Review People & Community

Risk Key Risk Areas Areas Impacted Mitigation Strategies
Category
• External factors such as geopolitical • Decrease in available • Identify potential sectors,
Business Acquisition and Revenue Flow • Delays or reductions in new orders • Adverse effects on • Develop new key accounts and
tensions, economic fluctuations,
geographies, and business models
projects or order
for expansion.
backlog.
wars, political changes, policy shifts,
market volatility, and pandemics
can influence business acquisition.
customers, and explore entry
revenues, cash flows,
and profitability.
into new areas through strategic
partnerships.
may hinder the achievement of
revenue targets.
• Strengthen customer engagement
• Revenue generation might also
to build long-term relationships
be adversely affected by internal
and repeat business.
challenges such as the inability
to deploy suitable manpower or
inadequate planning.
• Shortage of essential resources due • Delays in project • Strengthening employee
to high attrition in specific Business deliverables. engagement initiatives.
Units (BUs).
• Reduced revenues • Implementing targeted learning
Human Resources • Unforeseen events such as wars, • Increased manpower • Adopting proactive recruitment
and re-skilling programmes with
• Challenges in attracting the right
and profits.
talent in a competitive market.
adequate training.
expenses when
urgent hiring is
pandemics, and climate-related
strategies to attract suitable talent
disruptions affecting deployment
of personnel to global sites. necessary. from varied sources.
• Employee health • Creating a safe and secure working
and safety concerns. environment and ensuring
employee well-being.
• Many of the company’s contracts
• Placing greater emphasis on contract
• Working capital
Locked Working Capital and Cash Flow • Cash flows from projects may vary • There could be • Conducting thorough due diligence
follow milestone-based payment
and claims management to ensure
may be affected,
project delivery remains profitable.
leading to increased
terms, which means that
significant costs may be incurred
financing costs.
before billing and collection
and accounting for locked capital or
actually take place.
potential cash flow issues at the bid
periods of negative
cash flow.
stage.
considerably during the execution
• Negotiating contracts with
period, depending on factors such
improved payment terms,
as delays and unforeseen events.
particularly with private clients
or where tender conditions allow
changes.
• Costs may increase in projects due • Reduction in overall • Conduct thorough reviews during
to various reasons such as: profitability. the bidding stage and examine
both primary and secondary data
Cost Overrun - Higher number of resources • Potential disputes to identify risks, quantify them, and
required.
factor them into pricing.
with clients.
- Delays in project schedule.
- Resources being underutilised • Adopt best practices in project and
contract management to prevent
while assigned to a project. cost overruns.

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