RISKS AND OPPORTUNITIES
Effective risk management helps us manage the impact of events and attain business objectives. We ensure this with our robust risk management framework and a holistic approach of continually identifying, monitoring, evaluating and managing risks. Amidst rising geopolitical turbulence and global supply chain issues, we are increasing our agility to tackle emerging risks and capitalize on new opportunities.
We have a well-defined framework and procedures for Enterprise Risk Management (ERM), prepared under the supervision of the Executive Board. These cover information security, operations, delivery, and key support functions. The procedures include risk identification, analysis, response, tracking, management discussion and mitigation.
Our respective functions and project teams maintain risk registries, which are centrally reviewed and periodically monitored by compliance and governance teams responsible for specific risk areas. Additionally, our defined risk appetite reflects the broader risk levels we can assume, manage, and incorporate into our strategy.
We ensure effective ERM through a robust governance mechanism involving the Chief Information Security Officer (CISO), Chief Information Officer (CIO), and the Engineering and Business Excellence (EBE) team, who work together with the Executive Board.
Foreign currency fluctuation
International operations account for a substantial part of our revenues, and unfavorable movements in foreign currency might affect our profitability.
Customer credit
The inability to obtain payments owed by our customers can impact our working capital cycle and lead to losses.
Availability of credit and liquidity management
Our inability to maintain an optimal liquidity level may prevent us from meeting future cash and collateral obligations.
Concentration of revenues
We are dependent on a few customers and a specific geography for most of our revenues. Our inability to attract new customers, retain existing ones, or any unfavorable macroeconomic scenario in our key target market may impact revenues.
New and emerging technology disruption
Amidst the rapid evolvement of IT industry, the inability to develop new technology capabilities may impact new business opportunities.
Profitability and sustenance of the business
An increase in wages and the inability to accurately compute contract pricing through various cost estimations may impact profitability.
Business expansion
The inability to secure new orders and enhance our workforce's bandwidth will result in stagnation. Additionally, we face the challenge of contractual clauses that may restrict our ability to offer services to different customers.
Talent availability
We depend on our talent to deliver solutions to clients. The inability to attract and retain talent may impact business opportunities.
Optimal resource utilization
The inability to maintain high resource utilization and productivity will impact profitability
Contractual commitments and project delivery challenges
The inability to uphold contractual commitments may lead to the termination of agreements and affect future business opportunities.
Compliance with local legislation
Non-compliance with the local laws of the regions in which we operate may lead to litigation or license cancelation.
Restriction on immigration or work permits
We depend on our Indian personnel to provide onsite support to clients. Any geopolitical tension or unfavorable changes in immigration laws may impact project delivery.
Data privacy and information security risks
The inability to ensure customer data privacy and protect systems or clouds from cyberattacks may expose us to litigation risks.
IP risks
The inability to protect our intellectual properties (IPs) may lead to missed opportunities. Furthermore, we also face risks of non-compliance with third-party open-source software terms or IP infringement claims against our solutions, which may result in discontinuation of services to clients and fines.
