Risk & Corporate Governance

Martin Dow Group has set up a risk management framework in compliance with good industry practices. This risk management approach is based on a comprehensive risk assessment process that includes risk identification and management. The risk management approach also takes into account emerging trends (including threats and opportunities) identified by internal and external sources.

A risk management policy endorsed by the Chairman, consistent with ISO 31000 and COSO ERM standards, evidences the high-level governance of risk management at Martin Dow Group and the related roles and responsibilities at Senior Management level.

In this perspective, the Group depends on the following:

• Board / Audit Committee: This committee is responsible for overall Risk Management. We ensure that risk management is embedded into all processes and activities and that the Board / Audit Committee is adequately informed of significant risk management issues and the actions undertaken to manage risks on a regular basis.
• Group Risk Management Committee: This committee formulates the strategy and policy based on risk appetite, risk attitude and risk exposures.
• Group Internal Audit & Risk Management Department: This department assists in identification of related risks, reviews and reports on the efficiency and effectiveness of the risk management framework.

The Group assesses risks as part of the decision-making processes intended to evaluate business growth and sustainability. Risks are documented in the Corporate Risk Register. The Group uses following techniques for risk assessment:

• Discussions during Team meetings: Risks and opportunities relevant to business decisions are considered and discussed at large.
• Inspections and audit: Physical inspections of premises and audit of activities; along with audits with established systems and procedures are carried out by Internal Audit and other departments.
• Compliance identification: Compliance risks are identified and mitigated through appropriate controls

The Group has prepared Business Continuity Plans (BCP) for all critical sites. A separate comprehensive Disaster Recovery Plan (DRP) is also in place for Group information assets. Martin Dow Group assesses risks as to their potential impact and probability of occurrence. Depending on the risk assessment, Group may adopt one or more of the methods suitable to minimize or mitigate the risk.