Reliance’s Risk Management Framework.pptx

Reliance industry risk management framework

1. Reliance’s Risk Management Framework Harshith A S

2. AGENDA Introduction Enterprise Risk Management at Reliance Governance Framework Risks and Response Financial Risks Equity Risks Insurance – Risk Mitigation 20XX PRESENTATION TITLE 2

3. INTRODUCTION Reliance Industries Limited (RIL) is an Indian multinational conglomerate company founded by Dhirubhai Ambani in 1966. Headquartered in Mumbai, Maharashtra, India, it operates in various sectors including petrochemicals, refining, oil and gas exploration, telecommunications, retail, and media. RIL is one of the largest publicly traded companies in India by market capitalization and revenue Some of the notable subsidiaries of Reliance Industries include Reliance Retail, Jio Platforms, Reliance Petroleum, Reliance Industrial Infrastructure, and Reliance Power. Reliance Industries has won several awards and accolades over the years, including the Fortune Global 500 list, the Forbes Global 2000 list, and the Economic Times Awards for Corporate Excellence 3

4. Enterprise Risk Management at Reliance The Group’s motto, ‘Growth is Life’, aptly captures the ever-evolving spirit of Reliance. It also presents multiple opportunities and risks that are managed through the robust Risk Management Framework. The framework helps the Group identify, assess, respond to and monitor, on a real-time basis, risks that impact business objectives. Risk management is an integral component of the Reliance Management System.

5. Enterprise Risk Management at Reliance PERFORMANCE 5 The Company has a well-established “Three Lines of Defense” approach: Business/Process Managers (Self-verification, first line of defense) Risk Management Function (Functional Assurance, second line of defense) Internal Audit and Management Assurance Function (Independent Assurance, third line of defense)

6. The Company is prone to the following categories of risk: 6 Strategic and commercial risks Health, safety and environment risks Compliance and control risks Financial risks

7. Governance Framework Reliance’s Risk Management Framework is designed to be a simple, consistent and clear framework for managing and reporting risks from the Group’s operations to the Board. The Board provides oversight through various Risk and Executive Committees 7

8. Governance Framework 8

9. RISKS AND RESPONSE 9 Climate Change and the Energy Transition Commodity Prices and Markets Customer Experience and Retention Oversight over Investee Companies/Alliances Talent to Support Scaling Business Data Privacy Risk Cybersecurity Risk Health, Safety and Environmental (HSE) Risks in Operations Safety and Environmental Risks During Transportation Physical Security and Natural Calamity Risks Regulatory Compliance Risks

10. FINANCIAL RISKS 10

11. Reliance Industries BETA : 0.98 Beta is a statistical measure that compares the volatility of a stock against the volatility of the broader market, which is typically measured by a reference market index. Reliance Industries Limited shows a Beta of 0.99. This is very close to 1. The volatility of Reliance Industries Limited according to this measure is consistent with the market volatility. 20XX PRESENTATION TITLE 11 EQUITY RISK

12. Insurance – Risk Mitigation Reliance maintains insurance cover for properties on All Risk basis, including against Act of God perils (flood, earthquake, cyclone, tsunami etc.), business interruption and third party liability. The Company covers the properties on full sum insured basis on replacement value. It also maintains various other types of insurance, such as Erection All Risk for its major capital expenditures projects, Directors’ and officers’ liability, transit cover, charterers’ liability cover and employee benefit insurance policies. The scope of coverage, insurance premiums, policy limits and deductibles are in line with the size of the company and its nature of business. 12

13. THANK YOU Harshith A S 13