Page 34 - Tata Steel One Report 2024-Eng-Ebook HY

Business Operation and Performance Driving Business Towards Sustainability
Corporate Governance Policy Financial Statements Attachments
Risks of Business
In Fy2024-25, steel industry faced risks shaped by multiple factors including the ongoing economic slowdown in China that suppressed steel demand, the US tariffs on Chinese steel exports increased global supply, including to Thailand, potentially altering pricing trends. Additionally, economic downturns in leading markets like the US, EU, and China further dampened demand and exerted pressure on prices and margins. In parallel, geopolitical tensions and trade disruptions impacted on inflation, interest rates and supply chain challenges. Fluctuations in exchange rates introduced volatility affecting import/export costs, and competitiveness. Decarbonization in Europe in the face of stringent environmental compliance requirements presented significant compliance challenges and substantial costs associated with integrating new technologies. Cybersecurity threats, intensified by AI and geopolitical conflicts, posed serious risks to business continuity. Moreover, severe weather events driven by climate change disrupted supply chains that had an impact on business continuity. By integrating insights from evolving risks into our strategic framework, the company was able to proactively identify and mitigate potential
disruptions, refine its decision-making processes, and bolster organizational agility, thereby ensuring sustained growth and preserving its competitive advantage in an increasingly volatile landscape.
The company has implemented an Enterprise Risk Management (‘ERM’) process to provide a holistic view of the aggregated risk exposure as well as to facilitate more informed decision-making. In its journey towards Risk Intelligence, a robust governance structure has been developed and aligned with Tata Steel (TSL) Group framework which has been designed and developed with various inputs from the best practices across industries and international standards like Committee of Sponsoring Organization of the Treadway Commission (‘COSO’) and ISO 31000 and tailored with suitable customizations to meet the requirements of the company. The Board of Directors has constituted a Committee of the Board called the Audit & Risk Review Committee to review the risk management system and for monitoring of the overall risk management framework of the Company. At senior management level, a Risk Review Committee has been constituted to drive the ERM process across the company.
32 Tata Steel (Thailand) Public Company Limited