Annual Report 2016-17

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159

Report on Risk Management

Overview

The Risk management practices at Persistent aim at identifying, assessing, monitoring and mitigating various risks faced

by our business. It seeks to minimize adverse impact on our business objectives and sustain and enhance competitive

advantage(s) to the company.

Objective

The objective of our Risk Management Policy is to augment its risk management strategies. It also intends to promote

risk awareness amongst employees and to integrate risk management within the corporate culture. It also assists in

bringing about the alertness for risks among the risk owners.

Structure

The primary responsibility for risk management lies at the business level. Part of the role of all the heads of business

units is to ensure risks are managed appropriately. The risk management function forms the second line of defense

and independently assesses all risks. A Risk Management Committee makes an overall assessment of risks impacting

the activities of the Company based on clearly deoned risk management policy. It comprises the Risk Manager and Risk

Ofocers. Its report is reviewed by the Audit Committee on a quarterly basis which in turn reports it to the Board.

The risk management framework at Persistent is given below:

Board of Directors

Audit Committee

(Acts as Risk Committee)

Risk Management Group

(CFO and Head of Business

Units)

Risk Owners

(Function and Business Heads)

Risk Management Process

Our risk management practices are primarily focused on effectiveness of the business strategies, preparedness in

addressing the incidences which may cause business disruptions and strengthening internal controls.

The risk management process includes

Risk Identiocation: The risk management process starts with the systematic identiocation of key risks and their root

causes, impact and probability of occurrence. The mechanism for identiocation and prioritization of risks includes

surveys and business risk scanning through functional groups. A quarterly risk survey is conducted across all functional

units to get inputs on key risks in business, their probability and impact on business, any mitigation plans to minimize

the impact. Internal audit ondings also provide pointers for risk identiocation.