We operate in a dynamic environment which not only provides opportunities but also exposes the business to various risks. To proactively identify and manage key risks for achieving our strategic objectives, we have put in place a well-defined Enterprise Risk Management (ERM) framework.
Rising inflation and subsequent increase in cost of financing could adversely impact capex plans. We are also exposed to currency volatility. Further, development in climate change regulations and disclosure standards could reduce access to capital and increase the cost of funding.
Evolving regulatory framework may have material impact on operations. Deviation in compliance and adherence may also adversely impact reputation.
Steel demand is affected by high inflation. Re-imposition of mobility restrictions amidst the spread of new variants may also affect demand and supply chains. Fast-paced technological changes and shifting customer preferences may necessitate change in strategy.
Disruption to Tata Steel’s manufacturing processes caused due to various factors such as equipment failures, natural disasters, epidemics or pandemics or extreme weather events, etc. could adversely affect operations and customer service levels.
Inconsistent adherence to process and workforce safety requirements, safety laws and regulation may have adverse impact on business continuity and operation. COVID-19 contagion poses risk to workforce health & safety.
An erosion of trust with communities will slow down societal impact and lead to consequent loss of reputation or business continuity
Volatility in raw material prices significantly impacts the input costs. Geopolitical events, pandemic or changing weather could affect commodity prices.
Weather disruptions or geopolitical instability puts a threat on material availability. Political instability coupled with intermittent waves of pandemic is not only a threat to raw material supplies but also has an adverse impact on ship and container freights availability.
Transition to remote working models and accelerated adoption of digital technologies have increased vulnerability to cyber-attacks. Non-compliance to IT legislations and regulations may lead to business disruption and imposition of penalties.
