Vedant Asset Limited

 

 

 

 

 

 

RISK ASSESSMENT AND MANAGEMENT POLICY

 


VEDANT ASSET LIMITED

CIN: U74900JH2015PLC003020

Registered Office: 3rd Floor, Gayways House Pee Pee Compound Ranchi Jharkhand 834001, India

Telephone No.: +91- 9304955502 ; E-mail: cs@vedantasset.com

Website: www.vedantasset.com

 

 

RISK ASSESSMENT AND MANAGEMENT POLICY

 

1.        PREAMBLE

 

Pursuant to Regulation 17(9) of the Securities and Exchange Board of India (Listing Obligations and Disclosure Requirements) Regulations, 2015 (“SEBI Listing Regulations”) and Section 134(3) of the Companies Act, 2013, this Risk Management Policy (“Policy”) establishes the philosophy of Vedant Asset Limited (“Company”), towards risk identification, analysis and prioritization of risks, development of risk mitigation plans and reporting on the risk environment of the Company. This Policy is applicable to all the functions, departments and geographical locations of the Company. The purpose of this Policy is to define, design and implement a risk management framework across the Company to identify, assess, manage and monitor risks. Aligned to this purpose is also to identify potential events that may affect the Company and manage the risk within the risk appetite and provide reasonable assurance regarding the achievement of the Company’s objectives. This will present a wide approach to ensure that key aspects of risk  that have a wide impact are considered in its conduct of business.

 

Risk: Risk is an event which can prevent, hinder or fail to further or otherwise obstruct the enterprise in achieving its objectives. A business risk is the threat that an event or action will adversely affect an enterprise’s ability to maximize stakeholder value and to achieve its business objectives. Risk can cause financial disadvantage, for example, additional costs or loss of funds or assets. It can result in damage, loss of value and /or loss of an opportunity to enhance the enterprise operations or activities. Risk is the product of probability of occurrence of an event and the financial impact of such occurrence to an enterprise.

 

2.  OBJECTIVE

 

The objective of this Policy is to manage the risks involved in all activities of the Company, to maximize opportunities and minimize adversity. This Policy is intended to assist in decision making processes that will minimize potential losses, improve the management of uncertainty and the approach to new opportunities, thereby helping the Company to achieve its objectives. The objectives of the Policy can be summarized as follows:

 

(a)    To safeguard the Company’s and its subsidiaries’/ joint ventures’ property, interests, and interest of all stakeholders;

(b)  To manage risks with an institutionalized framework and consistently achieving desired outcomes;

(c)   To protect and enhance the corporate governance;

(d)  To implement a process to identify potential / emerging risks;

(e)  To implement appropriate risk management initiatives, controls, incident monitoring, reviews and continuous improvement initiatives;

(f)   Minimize undesirable outcomes arising out of potential risks; and

(g)  To align and integrate views of risk across the enterprise.


3.        COMPONENTS OF A SOUND RISK MANAGEMENT SYSTEM

 

The risk management system in the Company should have the following key features:

 

(a)  Active board of directors, committee and senior management oversight;

(b)  Appropriate policies, procedures and limits;

(c)   Comprehensive and timely identification, measurement, mitigation, controlling, monitoring and reporting of risks;

(d)  Appropriate management information systems at the business level;

(e)  Comprehensive internal controls in accordance with current regulations and business size and scale; and

(f)   A risk culture and communication framework

 

4.        RISK GOVERNANCE

 

An organization’s ability to conduct effective risk management is dependent upon having an appropriate risk governance structure and well-defined roles and responsibilities. Risk governance signifies the way the business and affairs of an entity are directed and managed by its Board and executive management.

 

5.    RISK MANAGEMENT FRAMEWORK

 

The risk management committee formed by the Board shall periodically review the risk assessment and management policy of the Company and evaluate the risk management systems so that management controls the risk through a properly defined network.

 

Heads of departments shall be responsible for implementation of the risk management system as may be applicable to their respective areas of functioning.

 

6.   RISK MANAGEMENT COMMITTEE

 

The Risk Management Committee shall have minimum three (3) members with majority of them being members of the Board of Directors, including at least two thirds of members of the Risk Management Committee shall comprise  Independent Directors.

 

The Chairperson of the Risk Management Committee shall be a member of the Board of Directors and senior executives of the Company may be members of the Risk Management Committee.

 

The Risk Management Committee shall meet at least twice in a year. The quorum for a meeting of the Risk Management Committee shall be either two (2) members or one third of the members of the Risk Management Committee, whichever is higher, including at least one member of the Board of Directors in attendance.

 

The meetings of the Risk Management Committee shall be conducted in such a manner that on a continuous basis not more than one hundred and eighty (180) days shall elapse between any two consecutive meetings of the Risk Management Committee.