IVL has an Enterprise Risk Management framework that uses top-down and bottom-up approaches to identify and manage current and future economic, environmental and social risks and opportunities arising from the company’s business activities. This is led by the Board, the Sub Committee of the Board and senior management. This covers the assessment and review of internal and external risks, including global risks and factors that may affect the Company’s operations due to increasing business and international operations. Respective business heads, who are also members of the Sustainability and Risk Management Committee, as well as Members of Business Risk Management Committees, closely monitor key business risks and ensure adequate preventive measures and controls for mitigation. All significant risks identified are analyzed, recorded, reported and appropriate mitigation measures are initiated. The risk management report together with the risk mitigation plan is reviewed quarterly by the various committees at the business segment and plant level. In addition, the Sustainability and Risk Management Committee reviews business risks, internal and external, sensitivity analysis of the business plan, green field, merger and acquisition projects to ensure sustainability, especially the environmental and social impacts to business operations.

Risk Assessment

IVL has a Sustainability and Risk Management Committee (“SRMC”), a subcommittee of the Board. The Company’s SRMC reviews the Company’s performance on sustainability, assesses the risks associated with aspects on sustainable development and apprises the Board of risks with potentially significant impacts to ensure the institutionalization of robust business processes, procedures and policies. In addition, there is an effective process to evaluate and advise the Board on significant risks and uncertainties that could adversely impact sustainable and profitable growth. The Committee reports to the Board periodically on its activities and evaluates its performance on an annual basis by reference to its charter and current best practices. Respective business heads who are members of the SRMC also closely monitor key business risks.

The risks pertaining to human rights risks at our work place, in supply chain are also part of the risk management. More details on human rights risks are given in other chapter of this report.

IVL management and businesses place significant importance to risks relating to climate change as the same is inevitable and is going to have potentially serious implications for businesses. Post-COP21, IVL anticipates more environmental, social, political, and economic repercussions. The Company has carried out Climate Change Risk and Opportunity analyses including risks relating to water, shadow pricing analysis and its implications on business profitability. More details on climate change risks are given in Annual Report of the Company available on our website, www.indoramaventures.com.