Page 31 - TCE Annual Report 2019-2020

Delivering Aspirations | Achieving Scale

Risk Category Key Risk Areas Mitigation Strategies Areas Impacted

Human • People are our company’s most important • Developing specific learning and re- • Reduction in
Resources resource; hence our business success is skilling programs. revenue and
dependent on the ability to hire, retain, and profits
utilise qualified personnel in a profitable • Better and flexible manpower
manner. planning practices • Quality of
deliverables
• During times of reduced business, the • Enhancing employee engagement affected
challenge would be effectively training practices
resources in required skill sets and utilise the • Build a relationship with outsourcing • Negative impact
available workforce profitably. agencies for access to resources on the Brand value
with specific skill sets and/or those
required urgently.
Liabilities • Our project execution activities may result in • Adequate professional liability • Unexpected and
liability as per Contract conditions. insurance at the organisation and huge costs
project level
• We could be exposed to significant monetary • Negative impact
damages, claims or reputation risks due to • Proper due diligence at bid time to on profitability
deficiencies in service, any catastrophic event avoid taking up of large liabilities,
at our project sites, etc. adhering to contract requirements • Negative impact
and professional best practices to on reputation and
avoid imposition of penalties or brand value
liabilities.
Intellectual • Although we protect our intellectual • Strengthen process, contracts & • Unexpected and
Property (IP) property through contractual arrangements, other mechanisms to safeguard our huge costs
registration, licensing, NDAs, etc., we may not IP, confidential information & trade • Consumption
be able to completely prevent infringement of secrets. of a significant
our IPs.
• Provide training to employees on amount of senior
• Our employees could inadvertently or the importance of respecting IPs management’s
purposely cause an infringement of the client’s of our company and those of other attention and time.
or third party’s IP rights. stakeholders, and the high price that
we might become liable to pay in case • Negative impact
• Litigation to determine the scope of IP rights, of IP infringements. on reputation and
even if ultimately successful, could prove to be brand value
costly.
Loss of • Processes are being followed to properly • Training and sensitisation of • Unexpected and
confidential identify confidential information of the employees about the importance of huge costs
information / company and other stakeholders and prevent maintaining confidential information.
Data violation leakage. However, there remains a risk of loss • Loss of business.
/ breach / of confidential information either by oversight • Obtaining specific NDAs / • Negative impact
or on purpose. Confidentiality agreements from on reputation and
employees/partners.
• The chances of a data breach are increased in a brand value
Work From Home scenario. • Tightening of IT security measures.
JV / • We perform certain contracts as a member • Proper due diligence of JV partner • Impact on
Partnerships of joint ventures, partnerships, and similar during pre-bid/bid stage, esp. on quantity and
arrangements. There is a risk that our partners financial ability, experience and track quality of project
may be unable to fulfil their contractual record deliverables.
obligations to us or our clients.
• Strong back-to-back contractual • Loss of revenue
• We would have limited ability to control arrangement to pass on liabilities and and profit.
actions of our JV partners, including non- penalties to JV commensurate with
performance, default, bankruptcy or legal their share in the partnership • Loss of reputation.
compliance. • Legal costs and
waste of time.

International • Our international operations are exposed to • Proper due diligence during bid • Loss of business
Operations additional risks and uncertainties, including time in terms of country or location
unfavourable political developments and weak risk. Avoid excessively risky, unsafe, • Safety and security
foreign economies. E.g. unexpected changes economically unstable or weak risk of personnel.
in foreign government policies and regulatory countries or geographies. • Impact on revenue
requirements, Potential non-compliance with and profits.
regulations and evolving industry standards, • Have systems and processes to ensure
Renegotiation or nullification of our existing compliance to all key regulatory, • Impact on
contracts, Social, political, and economic govt and contractual compliances, strategic targets
instability; Currency fluctuations, etc. standards, laws, etc. for improving our
global footprint.
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