Risk Management

Polycab employs a structured risk management framework that enables swift response to disruptions and informed decision-making. By continuously monitoring risk indicators we protect our operations, preserve asset integrity and stakeholder confidence. This approach supports business continuity and positions us to capture emerging opportunities.

Risk Management Process

Key Business
Goals

In alignment with the goals set by top management and the Board and considering the acceptable level of risk, we establish frameworks, processes and controls to support the successful attainment of these objectives.

Risk
Identification

Identifying uncertainties that may have the potential to affect the achievement of business objectives.

Risk
Assessment

Assessing the identified risks and their potential impact.

Monitoring
& Reporting

Monitor and report risks along with their corresponding treatment strategies.

Risk
Treatment

Address identified risks through mitigation, transfer, tolerance, or termination strategies.

Risk Management Committee

Mr. T. P. Ostwal

Chairman

Mr. Inder T. Jaisinghani

Member

Mr. Bharat A. Jaisinghani

Member

Mr. Nikhil R. Jaisinghani

Member

Mr. Gandharv Tongia

Member

Mr. R. S. Sharma

Member

Mr. Bhaskar Sharma

Member

Mrs. Sutapa Banerjee

Member

Mr. Sumit Malhotra

Member

Risk Rating Matrix

  • Risk Movement: This refers to the change in the severity of a risk over time, indicating whether the risk is increasing, decreasing, or remaining stable.
  • Risk Likelihood: This metric evaluates the probability that a risk event will occur within a specified timeframe.
  • Risk Impact: This refers to the extent of damage or effect that an occurrence of a specific risk event would have on an organisation’s objectives.
  • Risk Appetite: This represents the level of risk that an organisation is willing to accept in order to achieve its strategic objectives.
  • Risk Rating: Risk likelihood x Risk impact
Risk Likelihood Impact Appetite Risk Rating
Threats to Information Security Likely Moderate Low
Technological Lag and Inadequate Adaptation Possible Moderate Moderate
Environment, Social and Governance Likely Moderate Low
Geopolitical and Social Instability Possible Rapid Moderate
Succession Planning Possible Slow Moderate
Threat from Competition Possible Slow Low
Foreign Exchange Rate and Commodity Price Fluctuations Likely Moderate Moderate
Statutory Compliance Failures Possible Moderate Moderate
Least Likely, Lowest Impact Most Likely, Highest Impact

  1. Threats to Information Security
Risk Movement

Risk Description
Caused by unauthorised breach of our information network, leading to interruption in the normal functioning of systems

Mitigation Measure

  • Developed a comprehensive two-year Cybersecurity Roadmap to proactively address emerging digital risks
  • Deployed advanced monitoring tools to enable real-time, 24x7 surveillance and threat detection across critical systems
  • Implemented Active Directory Protect and Privileged Access Management (PAM) to prevent credential abuse, privilege escalation and insider threats
  • Deployed a Web Application Firewall (WAF) and Next- Gen Secure Web Gateway (SWG) to protect against web-based threats, enforce secure access policies and prevent data leakage
  1. Technological Lag and Inadequate Adaptation
Risk Movement

Risk Description
Inability to evolve and address digital, channel/ business model innovation, automation and evolving GTM needs and keeping pace with market-driven changes (technology laggards)

Mitigation Measures

  • Strict monitoring and execution of digital roadmap for both B2B and B2C
  • Utilisation of latest ERP system
  • Introduced latest tech to stay ahead of peers:
    • Migrated both B2B and B2C dealers to a newer portal with better functionalities
    • Upgraded the Experts Loyalty Programme, for retailers and electricians, with advanced features
    • Launched the Pro+ app for electricians, to aid the business development team in influencer management
  1. Environment, Social and Governance
Risk Movement

Risk Description
Risks stemming from political and social situations, leading to disturbances within the business environment

Mitigation Measures

  • Defined ESG Roadmap and Charter
  • Appointed Chief Sustainability Officer
  • Materiality assessment conducted across stakeholders and adopted ESG Goals for FY 2029-30
  • KPIs/KRAs linked to achievement of ESG goals
  • External consultants onboarded to guide and drive ESG implementation within the organisation
  • Various product and site certifications ensure the highest levels of health and safety, such as
  • Introduced latest tech to stay ahead of peers:
    • ISO 9001:2015
    • 14001:2015
    • OHSAS
    • UL
    • BASEC
    • IEC
    • 45001:2018

  1. Geopolitical and Social Instability
Risk Movement

Risk Description
Risks stemming from political and social situations, leading to disturbances within the business environment

Mitigation Measure

  • Geographic diversification of manufacturing, supply chain and market. This ensures that location specific issues do not bear an extensive impact on operations
  • Protection against disruption through insurances eg. Industrial All Risk (IAR) etc.
  1. Succession planning
Risk Movement

Risk Description
Inability to retain human capital, to build highperformance team for enabling customer centricity and to have a structured succession planning process

Mitigation Measure

  • Plan and execute infusion of diverse talent at senior leadership levels to ensure de-risking and enrich leadership capabilities across the Board
  • Targeted employer branding approach to enhance employee value proposition for both current and future workforce
  • Skill-set assessment and training of middle and senior management
  1. Threat from Competition
Risk Movement

Risk Description
Risk from competition posed by both established players and new entrants, who employ aggressive growth strategies

Mitigation Measure

  • Strengthening brand positioning through increased investments in advertising and promotional activities
  • Strengthening of relationship with existing top distributors and expansion into whitespaces
  • Strengthening product portfolio through investment in R&D to stay ahead of the competition
  • Capturing rapidly growing market segments with superior products
  • Adopting targeted GTM and production innovation strategies
  • B2C Secondary and Tertiary scanning improvement

  1. Foreign Exchange Rate and Commodity Price Fluctuations
Risk Movement

Risk Description
Risk related to fluctuating foreign exchange rates and volatility in pricing of input commodities, including metals such as copper and aluminium

Mitigation Measure

  • Risk Management Committee reviews compliance with Board-approved currency and commodity hedging strategy
  • Documented commodity and foreign exchange risk management policy
  • Robust hedging framework which encompasses contracts with embedded derivatives as well as forward contracts
  • Automatic pricing module integrated with ERP
  • Metal advance pricing module for the procurement team

  1. Statutory Compliance Failures
Risk Movement

Risk Description
Risk related to non-compliance with statutory guidelines, including various rules and regulations under different statutes

Mitigation Measure

  • Statutory and internal audit by reputed global audit firms
  • Compliance tool and tracker implemented, mapped to compliance owner
  • Respective departments are given timely alerts to ensure adherence to regulations