Risk management Departments
Risk Activities Risk Mitigation Activities
Strategic Risks
 High Competition
 Technological advancement
 Demographic Changes
(age,income,population)
 Changes in industry and market
Commercial Risks
 Shortage of Raw materials
 Reduction in market demand
 Dependence on few customers
 Shifting of Customers to our competitors
 Asking for more favorable credit terms
and unsecured credit
Operational Risk
 Production breakdown
 HSE Risk
 Turnover of skilled staff
 Risk not being identified by our team
whenever changing processes or
acquiring technology or merging or
dividing facilities
Financial Risk
 Foreign Currency Risk
 Liquidity Risk
 Interest Risk
 Credit Risk
 Compete through improved quality of
product
 Upgrade manufacturing facilities
 Continuously assess product demand by
consumer surveys, attending exhibitions
and fashion shows
 long term contracts with suppliers and
improved and extended storage facilities
 Product research and development
 Focus on innovation
 Expanding customer base by exploring
new export markets and through
investment in retail and whole sale
business
 Continuous credit evaluation both
internally and by engaging credit
managers and obtaining insurance covers
wherever found prudent
 Well trained maintenance and
operational staff
 Standby and backup facilities
 Continuous training, workshops on HSE
matters and HSE Audit
 Market based remuneration package,
clear career path sharing and continuous
mentoring for career development to
retain skilled staff.
 Succession planning
 Engaging consultants prior to execution
to identify any risk and suggesting
solution and also yearly insurance audit
 Using various financial instruments such
as Forward Contracts, Bill discounting etc.
 Committed Credit Facilities
 Sales on credit after customer due
diligence
 Prepayment and rollover options
Compliance Risk
 Non Compliance of Applicable Laws
 Non Compliance of Policies
 Non Compliance of Product Standards
 Audit Committee and internal audit
department to review adequacy and
effectiveness of controls over compliance
and Financial Reporting
 Regular social audits
 Effective checks over product quality
controls