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Annual Report 2016-17
Risk measurement, mitigation and monitoring: For high rated risks, these are monitored closely for the effectiveness
of the mitigation plans in minimizing the impact of these risks. Analysis of e[posure and potential impact of risks are
carried out. Mitigation plans are developed by risk owners. The progress of mitigation plans is monitored and reviewed.
Risk Reporting: Important risks are reported outlining risk levels. Their probability, impact and status of mitigation plans
are discussed by the Risk Management Group. Deep dive analysis are done to check the risk rating and effectiveness
of mitigation plans in minimizing impact. Risk status updates are provided to the Board of Directors through the Audit
Committee.
Integration with Business strategy: The Risk Management report is used as a key input in business strategies. The
Company’s risk appetite repects broader level of risks that the company can assume and manage successfully. It is
factored into its strategy at the time of drawing up the business plan. The process is focused on minimizing adverse
impact of risk on Company’s growth, operating margins, people engagement, regulatory compliance and operational
efociency.
Below are the key risk categories:
Financial Risks
Business Model related risks
Operational risks
/egal risks
Compliance risks
Information security risks
Reputation risks
Technology related risks
Some of the major risks and measures taken to mitigate these risks are given below:
Technology Risks
1.1
Disruptive impact of new technologies:
The forecast about upcoming technologies which will drive market demand is very important in ascertaining the
areas in which the business should concentrate its efforts. :e might see an upswing in the services required in any
particular platform or technology and might take a decision to invest aggressively in that technology/platform. But
it carries the risk of it being replaced completely by another technology or any other economical alternative being
made available to such technologies. In case of such eventuality, the whole of the investment in such technology
will turn out to be infructuous. To address this risk we are closely tracking trends in new technologies and their
disruptive impact through the CTO’s ofoce.
Financial risks
2.1 Foreign currency puctuation risk: A substantial part of the company’s revenue accrues in US dollars whereas some
part of the e[penditure in incurred in Indian Rupees, hence currency puctuation thus has higher sensitivity towards
cost effectiveness. The below table shows the movement in currency during 2016-17.
66.50
67.08 67.51 67.04 67.04 66.61 66.87
68.64
67.95 67.87
66.76
64.85
64.00
66.00
68.00
70.00
Apr-16 May-16 Jun-16 Jul-16 Aug-16 Sep-16 Oct-16 Nov-16 Dec-16 Jan-17 Feb-17 Mar-17
USD/INR