Page 33 - Demo

Corporate Governance
Risk Management
Crisil adopts a balanced approach to risk management,
aimed at mitigating risks to an acceptable level within its
defined risk appetite while safeguarding the organisation’s
reputation and brand. This comprehensive approach is
designed to support the achievement of Crisil’s strategic
objectives, ensuring both business resilience and
sustainable growth.
To provide effective oversight and promote a strong risk
management culture across the organisation, two key
committees play a pivotal role. The Crisil Risk Management
Committee of the Board (RMCB) offers strategic direction
and ensures that risk management practices align with
the organisation’s risk appetite, monitoring significant
risks to guarantee they are managed appropriately.
Complementing this, the Crisil Internal Risk Management
Committee (IRMC), focusses on the implementation and
continuous improvement of risk management practices,
embedding risk awareness into business processes and
addressing emerging risks proactively.
Crisil’s risk management framework incorporates a bottom-
up risk identification process, which engages business units
and functions in highlighting risks within their operational
environments. This ensures that risks are captured from
the ground level, providing a comprehensive view of the
organisation’s risk landscape. Once risks are identified,
they are systematically assessed and evaluated for their
potential impact and likelihood.
Crisil places emphasis on recognising key risk themes,
including emerging risks that could influence its strategic
and operational objectives. Action plans are then developed,
along with relevant metrics to track risk mitigation efforts.
This process ensures continuous oversight and alignment
of risk management activities with Crisil’s overall strategic
goals, fostering an organisation-wide culture of risk
awareness and resilience.
The diagram below illustrates the Risk Management
framework that we have in place at Crisil.
Oversight
1. Risk Management
Committee of the Board
2. Internal Risk Management
Committee
Risk assessment
Combination of bottom
up and strategic view of
key risks
Risk
management
framework
Reporting
Key risk themes and
mitigation plans presented
to the internal and Board
Committees
Approach
Balanced approach to
risk management by
mitigating risks to an
acceptable level
Key risk themes
Identified and assessed
using a combination
of qualitative and
quantitative parameters
Risk monitoring
on a periodic basis
Process
Risks are identified and
assigned probability of
occurrence and potential
impact
Please refer to Crisil’s report on Management & Discussion Analysis in the Crisil Annual Report
2024 for a detailed discussion on key risks impacting Crisil business
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