Page 94 - ABFRL SUSTAINABILITY REPORT 2016-17

ReDesigning

FUTURE
B U S I N E S S PROOFING

Proofing
U
F
R
E
T
U

The best way to predict the future is to shape it they say, and so at Aditya Birla Fashion and Retail Ltd., we are
proactive in our approach for a better tomorrow. While it is impossible to know accurately what the future holds, deep
understanding of the emerging trends and potential impacts help increase our responsiveness to change and ability
to be future-ready. Knowledge of the shifting paradigms, fosters identi cation of risks and opportunities, based on
which we devise innovative strategies that both build resilience and drive progress.

RISK MANAGEMENT

Being future-ready begins with mitigating the risk factors associated with our business. In order to ensure a
sustained performance, we have constituted a Board-level Risk Management Committee (RMC) which assists the
Board in identi cation, evaluation and prevention or mitigation of operational, strategic and external risks. The
overall responsibility of monitoring and reviewing the Risk Management Plan rests with the Committee. Over and
above the RMC, we have designated a Chief Financial and Risk O cer to work in tandem with the Committee.

RISK MANAGEMENT COMMITTEE (RMC)

IDENTIFY ANALYSE ACTION MONITOR CONTROL

An internal committee undertakes assessment of risks
along with a detailed SWOT analysis. Such an
evaluation helps us zero in on our strengths and
leverage them, while aiding us in working on our
shortcomings. Our state-of-the-art manufacturing
facilities and leading position in the Indian apparel
industry have been our long-standing fortes, which
help us in harnessing threats and embracing
possibilities in newer arenas like E-commerce and
emerging markets.
Based on the ndings, the committee, in collaboration
with the RMC, de nes a risk management framework.
It then implements the mitigation plans and monitors
them regularly in a structured environment. Along with
the business, the committee also assesses the socio-
economic environment for internal threats and
opportunities. The framework is then updated
with re ned processes and systems for mitigation, as
per the outcomes.
89