The Cairn India Board is responsible for risk management, and for ensuring that robust internal controls are instituted to respond to changes in the business environment. Cairn India has put in place Risk Management Policy whose objectives are to optimize business performance; and to promote confidence amongst our stakeholders in the effectiveness of our business management process and our ability to plan & meet our strategic objectives.
A Risk Management Committee (RMC) comprising senior executives of the company, chaired by the CEO, is responsible for the review of risk management processes within Cairn India, and for overseeing the implementation of the requirements of this policy. The RMC provides updates to the Board on a quarterly basis on key risks faced by the company, and the relevant mitigant actions. The Director- Risk Assurance is the Secretary to the RMC and the Head of the Risk Management function.
The RMC is in turn assisted by function-specific Risk Management Sub-Committees, which are responsible for overseeing the risk management activities of the function, including proactively identifying emerging risks that may impact the company.
At an operational level, the respective functional managers are responsible for identifying and assessing risks within their area of responsibility; implementing agreed actions to treat such risks; and for reporting any event or circumstance that may result in new risks, or changes in existing risk profile.