Hindustan Prefab Limited is an ISO 9001-2008 certified Schedule ‘C’ Central Public Sector Enterprise under administrative control of the Ministry of Housing & Urban Poverty Alleviation. Credentialed as one of the oldest CPSEs, today HPL is a vibrant organization engaged in providing Project Management Consultancy services in civil construction projects which includes residential buildings including mass housing undervarious Govt. schemes, institutional building, infrastructure developments, specializedprojects in Health Sector & Prefab Construction awarded to it from the Central & stateGovt. and their Agencies.
IRM defines risk as "The combination of the probability of an event and its consequencethat can range from positive to negative." All organizations have objectives at strategic,tactical and operational levels - anything that makes achieving these objective suncertain is a risk. These risks are varied in nature and go hand in hand with the business opportunities. As our world becomes increasingly volatile and unpredictable,we must cope with greater uncertainty. It can never be assured that the Company operates in a totally risk free environment.
At HPL, we do believe Risk management should be embedded in the general management of the organization and fully integrated with other business functions such as finance, strategy, internal control, procurement, continuity planning, HR and compliance. Thus Enterprise risk management is an integrated or holistic approach to managing risk across the organization, using clearly articulated frameworks and processes led from board level. Accordingly the scope of this document is to formalizea risk management policy to identify, evaluate and minimize identifiable risks. This Policy shall be periodically reviewed by the Board of Directors, so that the risks are managed and controlled through properly laid down framework.
While striving to meet its Corporate Mission and Corporate Objectives, risks and concerns go hand-in- hand along with the opportunities. Civil construction is a high risk business which haunts every stakeholder. The company operates under limiting cost and time schedule. The probability of time over run and consequently cost over run exposes company to high risk. Similarly as part of Nation Building Task, the company’s employees and projects are exposed to risks and threats of life and property while operating in risky geographical areas. The Risk Management Policy seeks to strike a balance between company’s strengths, weaknesses, opportunities and threats on one hand with the real and potential risks on the other hand.
HPL’s approach towards Risk Management includes the following:
Following are the objectives of HPL’s Risk management policy:
The process of Risk Management covers the following:
From the perspective of HPL, the risks can be of following nature:
Risk Management Policy entails establishing a framework ensuring realization of the Company's objectives. HPL will have a three tier risk Management Framework as under:
Board of DirectorsRisk Management Committee (headed by GM)
Risk Controllers (All HODs)
To implement the Risk Management Policy, the following roles and responsibilities are laid down for the Enterprise Risk Management Process:
The Risk assessment methodology shall include:
Identified risks are analysed and the manner in which the risk is to be managed and controlled is then determined and agreed. The generally accepted options are:
The Company’s Risk Management is continuous process which implies a continuing cycle of implementing, monitoring, reviewing and managing risk management processes and simultaneously also sensitizing the organization against all possible risks.