The framework is in line with global best practice followed by leading companies with an objective of minimising risk exposure to the company, move towards a system-driven organisation and ensure that the exposures faced by the company are within its risk appetite, a Dabur press release said.
Every business today faces a threat of being exposed to various levels of business risks. At Dabur, we are already managing risks but this framework will formalise the process and provide an integrated approach to identify, assess, plan and manage business risks. This is being implemented with a view to largely insulate the company from potential threat of high business risk, said Dabur India CFO Rajan Varma, who has been nominated as the chief risk officer of the company.
Daburs risk management framework will be rolled out in phases and is expected to be complete by April 2003. This framework will study risk exposure across departments and locations and formulate processes to contain these risks, if any.
To implement this framework, the company has formed a team of risk co-ordinators under the chief risk officer who will be responsible for the implementation of this framework across locations and divisions.