RISK MANAGEMENT

Steering Confidently
Amidst Uncertainties

At Thermax, we recognise that risks are inherent in a dynamic global environment. We proactively identify, assess, and mitigate potential challenges to protect our stakeholders and maintain peak performance. Our forward-thinking approach safeguards our operations and uncovers opportunities for continuous improvement, ensuring we remain resilient and agile in the face of change.

Definition
Mitigation Plan
Strategies Impacted
Capitals Impacted
Project
Execution
Risk
Definition
  • Loss of reputation/market share/margin erosion due to inadequate process framework and monitoring of risks during the project lifecycle
Mitigation Plan
  • Deployment of robust project management structures across business divisions to monitor and control project execution risks during the project lifecycle
  • Multiple controls from the proposal to the execution stage enable the Company to take timely measures and mitigate potential risks
  • Monitoring of credit ratings and credit locks for defaulting customers are implemented
  • Digitally enabled systems for integrated project planning, document and knowledge management, quality monitoring and issue resolution, vendor collaboration and procurement management, including HSE applications for near-miss reporting, audits, and compliance dashboards
Strategies Impacted
Capitals Impacted
Data Governance and Cybersecurity Risk
Definition
  • Inability to identify, classify, document, digitise and archive business-critical knowledge/information to ensure complete, consistent, reliable, and secure corporate data
  • Adverse impact on the Company’s operations due to cyberattacks and lack of firewalls, encryption, and remote access controls, leading to compromise of confidential data and intellectual property
  • Inability to continue/recover business operations during any crisis, and/or disaster, with minimal disruption or loss of business
Mitigation Plan
  • Regular cybersecurity training sessions are conducted to raise awareness and promote best practices among employees
  • Multi-factor authentication is in place for access to critical systems, enhancing protection against unauthorised access
  • Cyber monitoring mechanisms are implemented to detect and respond to cyber-attacks
  • Cybersecurity technologies have been implemented to safeguard our systems and network infrastructure
  • Servers and databases supporting hosted applications are continuously upgraded to ensure high availability and performance
  • Disaster recovery procedures for critical applications are regularly tested to ensure business continuity in the event of a disruption
Strategies Impacted
Capitals Impacted
Risk of Climate Change
Definition
  • Impact on business dynamics due to restrictions and increase in compliance with conventional energy
Mitigation Plan
  • To mitigate the effects of climate change in the short, medium, and long-term, we are developing products based on renewable energy, acquiring new technologies, and complying with statutory standards
  • Prepared plan of action to be ready for adverse climatic conditions to prevent loss to production facilities, avoid stoppage of work, and ensure safety of workmen
Strategies Impacted
Capitals Impacted
People Risk – Skills and Competencies
Definition
  • Inability to attract talent and plan succession of people for key positions
Mitigation Plan
  • Leadership programmes at various leadership levels are being implemented
  • Introduced ESOP for senior management executives
  • Successors for critical roles have been identified and action planning is being tracked to develop them to take up available roles
  • Leadership competency framework created for comprehensive leader development in current business landscape and aligning capabilities with Company’s future vision & strategy
  • Exit interviews of regrettable attrition are conducted by external consultants to understand the improvement areas from an organisational perspective. The same is followed by action planning at BU level
Strategies Impacted
Capitals Impacted
  • Financial
    Capital
  • Financial
    Capital
  • Intellectual
    Capital
  • Natural
    Capital
  • Human
    Capital
  • Social and
    Relationship Capital
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