Risk Management Policy
Rehabilitation Plantations Limited (“the Company”) believes that risk management is to be a core component of the management of the Company and is aware that the Company’s ability to identify and address risk is vital to achieving its corporate objectives.
The Company’s risk management policy outlines the program implemented by the Company to ensure appropriate risk management within its systems and culture. Risk Management Policy is in compliance with the provisions of Companies Act, 2013, which requires the Company to lay down procedures about risk assessment and risk minimization.
It has been decided that a Risk Management Committee (RMC) comprising of senior managers of the Company shall periodically review the risk management policy of the Company so that the management controls the risk through properly defined network and will report to the Board.
Risk Management Program
The Company’s risk management program comprises of a program to identify, assess, monitor and manage its business risk, including any material changes to its risk profile. To achieve this, Company’s senior management should develop and maintain the risk management program in light of the day-to-day needs of the Company. Regular communication and review of risk management practice provides the Company with important checks and balances to ensure the efficacy of its risk management program.
Risk Identification Categories
The Company presently focuses on the following types of material risk categories:
Oversight and Management
The Board
Responsible for reviewing and ratifying the risk management structure, processes and guidelines developed and maintained by the risk management committee.
Risk Management Committee (RMC)
Responsible for day-to-day oversight. Ensures effective internal control systems, manages action plans, monitors performance, provides tools for risk ID, and regularly reports to the Board.
Employees
Responsible for implementing, managing and monitoring action plans with respect to material business risks, as appropriate.
Risk Management System
Backed by strong internal control systems, the current risk management framework ensures appropriate structures are in place to effectively address inherent risks in businesses with unique/relatively high risk profiles.
Review & Amendment
The Company regularly evaluates the effectiveness of its risk management program. Any change in the Policy shall be approved by the Board of Directors. Subsequent amendments in the Companies Act, 2013 shall automatically apply.