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• Annual Report 2018-19
Shaping the future of software driven business
Major Risks Effect of Risk
Measures for Risk Mitigation
Restrictions
on account
of changing
immigration
regulations
Frequent changes in the legislations
relating to work visa for the US results in
the restrictions in movement of the skilled
professionals and increase in costs
• Better monitoring to ensure better compliance in the midst
of changing laws.
• Have increased local hiring thereby reducing dependency on
work visa
• Closely monitoring of immigration policy of different
countries
• Offshoring of the work wherever possible
Foreign
Exchange Risk
Impact of volatility in the exchange rate • Constant analysis and review of current economic scenario,
exchange rate movement and net open position
• Regular consultation with forex risk advisors
• Forward cover on 12-months rolling basis to cover 45% to
70% of net open positions
Information
Security Risks
Cyber attack and hacking risks
• Continuous education for all the employees and individuals
on the Company network.
• Delivery IT environment security being strengthened
• End-point security enhanced
• Next generation firewalls deployed at different locations
Customer
Concentration
Risk
High dependence on Top customers
• Emphasis on growing business in other areas.
• Renewed focus on Growth and Solutions team to help build
new offerings
Governance
and
Compliance
in New
Geographies
With the global spread of business in
unknown territories, compliance of the
regulations in these geographies becomes
a challenge
• We have local consultants in these countries to take care of
all operational conformity
• Country readiness framework is prepared to identify legal
obligations
• Global Compliance Software with updates (obtained through
paid subscription) is in place for all major locations across
the globe
Risk
Associated
with Treasury
Investments
Sudden change in investment ratings
given by rating agencies and a liquidity
crunch by financial institutions result in
treasury loss as it happened in case of
IL&FS investments in recent past
• Continuous monitoring of the exposures in non-banking
investments
• Reduced exposure to NBFCs
Credit Risk
Non-collection / delay in collection of
customer dues
• Structured process of collection has been implemented.
Regular follow-up process is done for all overdue invoices.
• Monthly collection targets are set-up for all major customers
and collections are tracked against the targets.
• Legal action is initiated against defaulting customers
Risk of
Product
Obsolescence
Risk of any of the products which the
Company has acquired or developed
getting obsolete due to technology
advancement
• We are continuously investing in the products and upgrading
/ enhancing them to extend their road map
Employee
Attrition
Frequent changes in the workforce results
in delays in project execution and also
increases cost of resources
• To minimize any impact on business, aggressive hiring has
helped replenish the pool
• Initiated special pay package for freshers from campus
• Retention bonus offered in respect of special skills
• Special focus on internal job rotations
IP and Data
Leakage
Extensive use of the company network
to communicate and access data has
increased the risk of data / intellectual
property leakage
• Data Governance Policy and Processes are established
• Operations are certified for ISO 27001:2013 Information
Security Management Systems
• Industry standard data protections including DLP, VPN,
isolated networks and encryption
• Continuous monitoring by 24X7X365 Security Operation
Center (SOC)