Board Apex Body

Responsibility

Strategy, Performance and Risk Management

Function

Business units, Countries and Support units

Key Activities

Oversee Risk Strategy

 

Senior Management Centre

Responsibility

Policy and Monitoring

Function

Corporate Oversight and Control Functions

Key Activities

Mitigation and Contingency Planning

Risk Management Committee

Facilitate Discussions and Conception of Solution Status Monitoring

 

Departmental Heads Risk Owners

Responsibility

Independent Assurance

Function

Department Audit

Key Activities

Risk Identification

Principal risk

Price and Demand Risks

Material matters

Changes in the price of electricity

Mitigation strategy

We sell energy via PPAs at:

i) Regulated tariff; or

ii) Fixed price

Principal risk

Material matters

Changes in energy commodity prices

Mitigation strategy

Offset the uncertainty via diversification of fuel and purchase/sale agreements

Principal risk

Material matters

Demand fluctuation

Mitigation strategy

Higher or lower growth in annual demand has a moderate short-term impact on the Company’s results, given the characteristics of the generation facilities and the structure of the long-term power purchase agreements

Principal risk

Financial Risks

Material matters

Change in interest rate

Mitigation strategy

Continuous change in financing mix including by refinancing and appropriate fixed rate instruments such as NCDs

Principal risk

Material matters

Exchange rate volatility

Mitigation strategy

We fully hedge all foreign currency exposure

Principal risk

Operational Risks

Material matters

Multi-location manufacturing facilities

Mitigation strategy

Make necessary investments, apply essential quality systems, plan and monitor day-to-day functioning, train staff, and finally obtain appropriate casualty and civil liability insurance

Principal risk

People and Social Risks

Material matters

Failure to attract and retain talent

Mitigation strategy

JSW Energy believes in inclusive growth and employee engagement is an important aspect. We continue to enjoy one of the lowest employee attrition rate in the country

Principal risk

Material matters

Healthy relationship with the respective local communities

Mitigation strategy

We focus on holistic development of our communities We have empowered many lives through our social intervention programmes