Page 204 - 1-37

TRANSFORMING TRANSFORMING TRANSFORMING
SUSTAINABILITY REPORT FY 2023
Risk Management and Controls
Given Vedanta’s global operations, its
businesses are exposed to a diverse
range of risks. Having a risk management
system in place allows the Company to
identify, understand, and prevent or
minimise the occurrence of
low-probability, high-impact accidents,
and emergencies with significant potential
environmental and social externalities.
Implementing effective risk management
and control measures ensures compliance
and mitigates operational risks.
Vedanta’s robust risk governance
framework focuses on the management of
issues inherent to the business model or
common practice in the industry that are
in potential conflict with the interest of
broader stakeholder groups. By doing so, it
aims to avoid potential liabilities or any
risks that could limit or even lead to the
loss of our license to operate.
COMMUNITIES THE PLANET THE WORKPLACE
Risk Management Process
The group enterprise risk management
system is crafted to ensure effective
management of risks that Vedanta’s External Evaluate Strategic
businesses are exposed to through
regular business-level review meetings,
and are conducted at least once every
quarter.
These meetings serve as a platform for
each business division to review their
specific risk matrix, which is further Mitgate
evaluated by the Business
Management Committee. Each Identify Group Risk Management Framework
business division maintains their own
risk registers to track and monitor risks.
During these meetings, respective
businesses thoroughly review the
identified risks, any changes in the
nature and extent of major risks since M onitor
the last assessment, and the
effectiveness of existing control Financial Operational
measures. The control measures
outlined in the risk matrix are
periodically reviewed by the business
management teams to ensure ongoing ESG Risk Governance
effectiveness. As a natural resource company, Vedanta • The Committee of Directors (COD), led by
experiences risks that are beyond operations, the Vice Chairman and Group CFO,
Chaired by the CEOs of the respective compliance, and finance. These risks are provides support to the Board by
business, these meetings are attended related to material impact on environmental, examining, assessing, and granting
by CXOs, senior management, and social and governance aspects of the approval for borrowing and investment
concerned functional heads. To business. ESG risks related to sustainability proposals. These proposals fall within the
develop and nurture a risk are critical to the Company’s sustainability limits authorised by the Board. The
management culture within the strategy. Hence, the responsibility of committee meetings are attended by the
businesses, Risk Officers are appointed identifying and managing these risks is given CEO, business CFOs, Group Head Treasury,
at each business level and at the Group to the Chief Risk Officer, who is the and BU Treasury Heads, depending on the
level. member/chair of the Company’s risk agenda.
management committee.
• The ESG Committee focuses on reviewing
sustainability-related risks, ensuring that
In addition, the following key risk governance environmental, social, and governance
and oversight committees in Vedanta support factors are effectively considered and
the management of ESG risks:
managed within the organisation.
103