# Risk

Market Risk

Credit Risk

Liquidity Risk
Operational Risk
Finance Risk
Regulatory and
Compliance Risk
Environmental
and Social Risk

Technology and
Innovation Risk
Reputational Risk

Acquisation &
Investment

Other Factors
JSPL
Description
Market risk refers to the potential for loss arising from fluctuations in market prices, such as changes in interest rates, exchang
and asset values, impacting investments.
1. Mitigation Strategies
− Developing strong customer relationship and brand equity.
− Redistribution of sales mix, at the geography/segment level, to balance demand supply requirements.
− Strong focus on customer delight.

2. Interest Rate Risk - Interest rate risk is the risk that the fair value or future cash flows of a financial instrument will fluctuate
of changes in market interest rates. In order to optimize the Company's position with regard to interest income and interest e
and to manage theinterest rate risk, the Company performs a comprehensive corporate interest rate risk management by bala
proportion of the fixed rate and floating rate financial instruments in its total portfolio.

3. Foreign currency Risk - Foreign currency risk is the risk that the fair value or future cash flows of an exposure will fluctuate b
changes in foreign exchange rates. The Company transacts business primarily in Indian Rupees and US dollars. The Company h
obtained foreign currency loans and has foreign currency trade payables and receivables and is therefore exposed to foreign e
risk. Certain transactions of the Company act as a natural hedge as a portion of both assets and liabilities are denominated in s
foreign currencies. For the remaining exposure to foreign exchange risk the Company adopts a policy of selective hedging base
perception of the management. Foreign exchange contracts are carried at fair value.

4. Commodity price risk - Commodity Price Risk is the risk that future cash flow of the Company will fluctuate on account of ch
market price of key raw materials. The Company is exposed to the movement in price of key raw materials in domestic and int
markets. The Company has in place policies to manage exposure to fluctuations in the prices of the key raw materials used in o
The Company enters into contracts for procurement of materials, most of the transactions are short term fixed price contract
transactions are long term fixed price contracts.

5. Credit risk arises from the possibility that the counterparty will default on its contractual obligations resulting in financial los
Company. To manage this, the Company periodically assesses the financial reliability of customers, taking into account the fina
conditions, current economic trends, and analysis of historical bad debts and ageing of accounts receivable.
The Company considers the probability of default upon initial recognition of assets and whether there has been a significant in
credit risk on an ongoing basis through each reporting period. To assess whether there is significant increase in credit risk, it o
reasonable and supportive forward looking information such as:
(i) Actual or expected significant adverse changes in business.
(ii) Actual or expected significant changes in the operating results of the counterparty.
(iii) Financial or economic conditions that are expected to cause a significant change to the counterparty's ability to meet its o
(iv) Significant increase in credit risk and other financial instruments of the same counterparty.
(v) Significant changes in the value of collateral supporting the obligation or in the quality of third party guarantees or credit
enhancements. The Company makes provision against credit impairment of trade receivable based on expected credit loss (EC
The ageing analysis of the trade receivables (gross) has been considered from the date the invoice falls due:

6. Liquidity risk refers to risk of financial distress or extra ordinary high financing cost arising due to shortage of liquid funds in
where business conditions unexpectedly deteriorate and require financing. The Company’s objective is to maintain at all times
levels of liquidity to meet its cash and collateral requirements. Processes and policies related to such risk are overseen by seni
management and management monitors the Company's net liquidity position through rolling forecast on the basis of expecte
flows
7. Description
Operational risk refers to the potential for loss resulting from inadequate internal processes,systems, human factors, or extern
that can disrupt business operations and impact efficiency, reputation, and financial stability.
Mitigation Strategies
- Application of ISO framework integrated with FMEA (Failure Mode and Effect Analysis) to assess the operational risk at plant
risk mitigation of the same.
− Create a comprehensive business continuity plan which includes backup and recovery strategies, alternate facilities, and
communication plans.
− Transferring appropriate operational risks to external parties through insurance or risk purchase clause in agreements.
8. Description
Financial risk pertains to the potential for loss arising from various financial factors, including market volatility, credit defaults,
issues, interest rate fluctuations, and currency exchange rate movements, which can impact the financial stability and profitab
organisation.
Mitigation Strategies
− Focus on driving operating efficiency and cash generation.
− Balance between growth and deleveraging and reduction of debt.
− Maintain strong cash flow management practices to ensure sufficient liquidity.
9. Description
Regulatory and compliance risk refers to the potential for adverse consequences arising from non-compliance with laws, regu
and industry standards. It includes the risk of penalties, legal actions, reputational damage, and operational disruptions due to
violations or inadequate compliance measures.
Mitigation Strategies
− Investment in capacity building and training of resources for creating awareness on emerging regulations and applicable Com
− A policy of zero tolerance for non-compliance.
− Constant monitoring of the regulatory landscape.
10. Description
Environmental and social risk pertains to the potential for negative impacts on a company’s operations, reputation, and financ
performance due to environmental factors (such as climate change, pollution, and resource scarcity) and social factors (such a
practices, community relations, and human rights).
Mitigation Strategies
− Complying with all the applicable norms through use of best available technologies.
− Selection of the right equipment, technology, processes, and inputs.
− Monitor and report our sustainability parameters.

11. Description
Technology and innovation risk refers to the potential for negative outcomes resulting from the adoption, implementation, or
technology and innovation. It encompasses the risk of technological failures, cybersecurity breaches, obsolescence, and the in
adapt to rapid technological advancements,
which can impact business operations, competitiveness, and sustainability.
Mitigation Strategies
− Adoption of strong IT security measures to protect sensitive data from unauthorised access cyber threats.
− Cybersecurity awareness programme conducted across all the locations.
− Perform thorough due diligence when evaluating new technologies, vendors, or partners.
12. Description
Reputational risk relates to the potential harm to a company’s reputation, brand image, and public perception. Reputational r
result in customer loss, reduced business opportunities,
and long-term damage to the organisation’s value and standing in the market.
Mitigation Strategies
− Committed to zero harm by strengthening overall safety management and governance mechanism to bring safety-focussed
− Regular safety trainnigs to the workforce and concened teams to ensure high safety standards.
Arcelor Mittal
Risks related to the global economy and the mining and steel industry
4. Prolonged low steel and (to a lesser extent) iron ore prices and/or low steel demand would have an adverse effect on
ArcelorMittal’s results of operations.
4. Volatility in the supply and prices of raw materials, energy and transportation, and volatility in steel prices or
mismatches between steel prices and raw material prices could adversely affect ArcelorMittal’s results of operations.
4) Excess capacity and oversupply in the steel industry and in the iron ore mining industry have in the past and may
continue in the future to weigh on the profitability of steel producers, including ArcelorMittal.
d) Unfair trade practices, import tariffs and/or barriers to free trade could negatively affect steel prices and ArcelorMittal’s
results of operations in various markets.
e) Russia’s invasion of Ukraine, international reaction to it (in particular in the form of sanctions) and any regional or global
escalation of the conflict, could adversely affect the Company’s business, results of operations and financial condition.
f) Developments in the competitive environment in the steel industry could have an adverse effect on ArcelorMittal’s
competitive position and hence its business, financial condition, results of operations or prospects.
4) Competition from other materials and alternative steel-based technologies could reduce market prices and demand for
steel products and thereby reduce ArcelorMittal’s cash flows and profitability.
Risks related to ArcelorMittal's operations
a) ArcelorMittal’s level of profitability and cash flow currently is and, depending on market and operating conditions, may
in the future be, substantially affected by its ability to reduce costs and improve operating efficiency.
b) The Group’s carbon emissions intensity reduction targets are based on current assumptions with respect to the costs,
government and societal support for the reduction of carbon emissions in particular regions and the advancement of
technology and infrastructure related to the reduction of carbon emissions over time. Future developments may affect
such assumptions, and this may render the achievement of ArcelorMittal’s targets more difficult, or even impossible to
achieve for cost or other reasons.
c) ArcelorMittal has incurred and may incur in the future operating costs when production capacity is idled or increased
costs to resume production at idled facilities.
d) ArcelorMittal could experience labor disputes that may disrupt its operations and its relationships with its customers
and its ability to rationalize operations and reduce labor costs in certain markets may be limited in practice or encounter
implementation difficulties.
e) Disruptions to ArcelorMittal’s manufacturing processes caused for example by equipment failures, natural disasters,
accidents, epidemics, pandemics, geopolitical conflicts or extreme weather events could adversely affect its operations,
customer service levels and financial results and liabilities.
f) ArcelorMittal’s insurance policies provide limited coverage, potentially leaving it uninsured against some business risks.
g) ArcelorMittal’s reputation and business could be materially harmed as a result of data breaches, data theft,
unauthorized access or successful hacking.

Risks related to ArcelorMittal’s mining activities

a) ArcelorMittal’s mining operations are subject to risks associated with mining activities.
b) ArcelorMittal’s reserve and resource estimates may materially differ from mineral quantities that it may be able to
actually recover;
c) ArcelorMittal’s estimates of mine life may prove inaccurate; and market price fluctuations and changes in operating and
capital costs may render certain ore reserves uneconomical to mine.
c) ArcelorMittal faces rising extraction costs over time as reserves deplete.
Risks related to ArcelorMittal’s financial position and organizational structure
a) Changes in assumptions underlying the carrying value of certain assets, including as a result of adverse market
conditions, could result in the impairment of such assets, including intangible assets such as goodwill.
b) ArcelorMittal's indebtedness could have an adverse impact on its results of operations and financial position, and the
market's perception of ArcelorMittal's leverage may affect its share price.
c) ArcelorMittal’s ability to fully utilize its recognized deferred tax assets depends on its profitability and future cash flows.
d) Underfunding of pension and other post-retirement benefit plans at some of ArcelorMittal’s operating subsidiaries could
require the Company to make substantial cash contributions to pension plans or to pay for employee healthcare, which
may reduce the cash available for ArcelorMittal’s business.
e) ArcelorMittal’s results of operations could be affected by fluctuations in foreign exchange rates, particularly the euro to
U.S. dollar exchange rate, as well as by exchange controls imposed by governmental authorities in the countries where it
operates.
f) The Significant Shareholder has the ability to exercise significant influence over the outcome of shareholder votes.
g) ArcelorMittal is a holding company that depends on the earnings and cash flows of its operating subsidiaries, which may
not be sufficient to meet future operational needs or for shareholder distributions, and loss-making subsidiaries may drain
cash flow necessary for such needs or distributions.
Legal and regulatory risks
a) ArcelorMittal is subject to strict environmental, health and safety laws and regulations that could give rise to a
significant increase in costs and liabilities.
b) Laws and regulations restricting emissions of greenhouse gases could force ArcelorMittal to incur increased capital and
operating costs and could have a material adverse effect on ArcelorMittal’s results of operations, financial condition and
reputation.
c) The income tax liability of ArcelorMittal may substantially increase if the tax laws and regulations in countries in which it
operates change or become subject to adverse interpretations or inconsistent enforcement.
d) ArcelorMittal is subject to economic policy, military, political, social and legal risks and uncertainties in the emerging
markets in which it operates or proposes to operate, and these uncertainties may have a material adverse effect on
ArcelorMittal’s business, financial condition, results of operations or prospects.
e) ArcelorMittal is subject to an extensive, complex and evolving regulatory framework which may expose it and its
subsidiaries, joint ventures and associates to investigations by governmental authorities, litigation and fines, in relation,
among other things, to antitrust and compliance matters. The resolution of such matters could negatively affect the
Company’s strategy, operations, profitability and cash flows in a particular period or harm its reputation.
f) ArcelorMittal is currently and in the future may be subject to legal proceedings or product liability claims, the resolution
of which could negatively affect the Company’s profitability and cash flows in a particular period.
g) Changes to global data privacy laws and cross-border personal data transfer requirements could adversely affect
ArcelorMittal's business and operations.
h) U.S. investors may have difficulty enforcing civil liabilities against ArcelorMittal and its directors and senior
management.
Risks related to ArcelorMittal’s acquisitions and investments
a) ArcelorMittal has grown through acquisitions and may continue to do so. Failure to manage external growth and
difficulties completing planned acquisitions or integrating acquired companies could harm ArcelorMittal’s future results of
operations, financial condition and prospects.
b) ArcelorMittal may encounter further difficulties with respect to ArcelorMittal Italia (renamed Acciaierie d'Italia) ("ADI").
c) ArcelorMittal faces risks associated with its acquisition, via a joint venture, of AMNS India.
d) ArcelorMittal’s greenfield, brownfield and other investment projects are subject to financing, execution and completion
risks.
e) ArcelorMittal faces risks associated with its investments in joint ventures and associates.
Cater Pillar Inc
c) Commodity price changes, material price increases, fluctuations in demand for our products and
services, significant disruptions to our supply chains or significant shortages of labor and material may
adversely impact our financial results or our ability to meet commitments to customers.
a) The success of our business depends on our ability to develop, produce and market quality products
that meet our customers’ needs.
B) We operate in a highly competitive environment, which could adversely affect our sales and pricing.
c) Increased information technology security threats and more sophisticated computer crime pose a risk
to our systems, networks, products and services.
d) Our business is subject to the inventory management decisions and sourcing practices of our dealers
and our OEM customers.
e) We may not realize all of the anticipated benefits of our acquisitions, joint ventures or divestitures, or
these benefits may take longer to realize than expected.
f) Union disputes or other labor matters could adversely affect our operations and financial results.
a) Disruptions or volatility in global financial markets could limit our sources of liquidity, or the liquidity of
our customers, dealers and suppliers.
B) Failure to maintain our credit ratings could increase our cost of borrowing and could adversely affect
our cost of funds, liquidity, competitive position and access to capital markets.
c) Our Financial Products segment is subject to risks associated with the financial services industry.
d) Changes in interest rates or market liquidity conditions could adversely affect Cat Financial’s and our
earnings and/or cash flow.
e) An increase in delinquencies, repossessions or net losses of Cat Financial customers could adversely
affect its results.
f) Currency exchange rate fluctuations affect our results of operations.
g) Restrictive covenants in our debt agreements could limit our financial and operating flexibility.
h) Sustained increases in funding obligations under our pension plans may impair our liquidity or financial
condition.
a) Our global operations are subject to a wide-range of trade and anti-corruption laws and regulations.
B) International trade policies may impact demand for our products and our competitive position.
c) We may incur additional tax expense or become subject to additional tax exposure.
d) Costs associated with lawsuits or investigations or adverse rulings in enforcement or other legal
proceedings may have an adverse effect on our results of operations.
e) New regulations or changes in financial services regulation could adversely impact Caterpillar and Cat
Financial.
f) We are subject to stringent environmental laws and regulations that impose significant compliance
costs.
g) Changes in government monetary or fiscal policies may negatively impact our results.
a) Our business and the industries we serve are highly sensitive to global and regional economic
conditions.
B) Catastrophic events, including global pandemics such as the COVID-19 pandemic, could materially
adversely affect our business, results of operations and/or financial condition.
e) Our global operations are exposed to political and economic risks, commercial instability and events
beyond our control in the countries in which we operate.
JSW Steel
a) Raw material availability and cost – Iron ore and Coking coal
Our primary raw materials, iron ore and coking coal, and other commodities like thermal coal, natural gas, contribute to a sign
portion of our operating cost. Iron ore, coking coal and other commodities' prices and availability depends on:
- Global price and currency fluctuations and parity of landed cost considering price, freight, tariff and exchange rates
- Government policies on mining, allocation and tariff
- Domestic demand-supply gap, constraints and vendor actions interruptions in production by suppliers, demand for raw mat
and suppliers’ allocation to other purchasers leading to the risk of production disruptions due to non-availability of coking coa
are solely dependent on coking coal imports
- Uncertainty in availability given that no major additional capacities are being added globally
- Few of the commodities have high dependence on certain geographies
b) Infrastructure & Logistics
Increasing production capacity from 12 to 19.5 MTPA at our Vijayanagar plant result in logistics risks such as:
- Congestion of vehicles/rake at the entry and exit points leading to the disruption in the plant operations
- Risk of accidents with the increase in the road traffic
- Scarcity or non-availability of rakes
c) Mergers & Acquisitions
- Risk of acquisition at value greater than fair value may impact Return on Capital Employed (RoCE), thus adversely impact deb
interest servicing
- Challenges in turn around and scale up or delay may drag the profitability
- Old litigation may impact JSW Steel Group earnings and erode stakeholders value
d) Marketing
Intensifying competition and ability to market increasing volumes
a) Utility–Water & Electricity
Risk of disruption in production due to non-availability of water/inadequate power supply for enhanced capacity.
B) Human resources
Human capital with the requisite skillset and experience is critical to maintain the current level of operations and upcoming
expansion at plant. Acquiring and retaining Response strategies talent is necessary to keep pace with business growth.
a) Foreign exchange fluctuations
Exchange rate changes/fluctuation between two currencies.
B) Interest rate
Interest rate increases in the key global economies could slowdown foreign currency inflows into the country, which could affe
value of domestic currency and interest rates and thus, adversely impact our ability to secure financing on favourable terms.
a) Compliance risk
Evolving regulatory framework may have material impact on operations. Non-compliance and non-adherence may impact
reputation.
 - Steelmaking inherently involves the emission of CO2, dust and other co-products gases/waste (slag), along with significant w
consumption, posing a risk to environment and sustainable growth.
- There is a need to decarbonise steel making for environmental sustenance for which India has committed to achieve Net Zer
emissions by year 2070. In India, as elsewhere, climate action is intensifying but any drastic change in carbon emission regula
may adversely impact our business and operations.
- Compliance with new and more stringent environmental obligations related to greenhouse gas (GHG) emissions may require
additional capital expenditure or modifications in operating practices and additional reporting obligations
- Capacity expansion projects require adherence to legal requirements like environmental assessments, environmental impac
studies and/or plans of development before commencing work.
- Water availability along with climate change is also posing as an emerging risk to our operations due to its imminent importa
steel making. Resultant weather patterns relating to climate change may pose as a challenge for water availability for operatio
- Expiration or delay in approvals could prevent us from carrying out our operations in full.

a) Occupational health and safety

The steel sector is subject to extensive health and safety laws, regulations and standards. Any safety lapses would
result in damage or destruction of property, assets and human capital.

a) Cybersecurity
Cybersecurity risk could damage reputation and lead to financial loss. Such threats arise from:
- Theft of corporate information
- Theft of financial information (e.g., financial results and bank details)
- Ransomware: Cyber extortion
- Disruption to business (e.g., inability to carry out
- SAP transactions, online payments)
- Loss of business or contract
Liberty Steel
Our businesses are conducted almost exclusively outside of the U.S., which gives rise to numerous
operational risks.
Our businesses operate almost exclusively in countries outside the U.S. and are subject to the following
inherent risks:
• fluctuations in foreign currency exchange rates;
• difficulties in staffing and managing international operations;
• potentially adverse tax consequences;
• export and import restrictions, custom duties, tariffs and other trade barriers;
• increases in taxes and governmental fees;
• economic and political instability; and
• changes in foreign and domestic laws and policies that govern operations of foreign-based companies.

We are exposed to foreign currency exchange rate risk.

a) Our substantial leverage could limit our ability to obtain additional financing and have other adverse
effects.
B) Certain of our subsidiaries are subject to various debt instruments that contain restrictions on how we
finance our operations and operate our businesses, which could impede our ability to engage in
beneficial transactions.
c) We are exposed to interest rate risks. Shifts in such rates may adversely affect the debt service
obligation of our subsidiaries.
d) We are subject to increasing operating costs and inflation risks, which may adversely affect our results
of operations.
e) Continuing uncertainties and challenging conditions in the global economy and in the countries in
which we operate may adversely impact our business, financial condition and results of operations.
f) We are exposed to sovereign debt and currency instability risks that could have an adverse impact on
our liquidity, financial condition and cash flows.
g) We may not freely access the cash of our operating companies.
h) We are exposed to the risk of default by the counterparties to our cash and short-term investments,
derivative and other financial instruments, and undrawn debt facilities.
i) We may not report net earnings.
a) Our businesses are subject to risks of adverse regulation.
B) New and existing legislation, and interpretations thereof, may significantly alter the regulatory
regimes applicable to us, which could adversely affect our competitive position and profitability, and we
may become subject to more extensive regulation, particularly if we are deemed to possess significant
market power in any of the markets in which we operate.
c) The U.K.’s departure from the E.U. could have a material adverse effect on our business, financial
condition, results of operations or liquidity.
d) We cannot be certain that we will be successful with respect to acquisitions, dispositions, joint
ventures, partnerships or other similar transactions, or that we will achieve the anticipated benefits
thereof.
e) The expected synergies and benefits from our acquisitions and joint ventures may not be realized in
the amounts anticipated or may not be realized within the expected time frame, and risks associated
with the foregoing may also result from the extended delay in the integration of the companies.
f) Our integration efforts may not be executed successfully, or such integration may be more difficult,
time consuming or costly than expected. Operating costs, customer loss and business disruption,
including maintaining relationships with employees, customers, suppliers or vendors, may be greater
than expected.
g) Certain operations are conducted by joint ventures that we cannot operate solely for our benefit.
h) Our interests in the VodafoneZiggo JV and the VMO2 JV are held pursuant to Shareholders
Agreements that contain provisions relating to governance as well as transfer and exit rights, which,
depending on the circumstances, may not be in the best interest of our company.
i) We may have exposure to additional tax liabilities.
j) The “Virgin” brand is used by certain of our consolidated subsidiaries and nonconsolidated joint
ventures under licenses from Virgin Enterprises Limited and is not under the control of such subsidiaries.
The activities of the group of companies utilizing the “Virgin” brand and other licensees could have a
material adverse effect on the goodwill of customers towards our business as a licensee and the licenses
from Virgin Enterprises Limited can be terminated in certain circumstances.
a) We operate in increasingly competitive markets, and there is a risk that we will not be able to
effectively compete with other service providers.
B) Changes in technology may limit the competitiveness of and demand for our services.
C) Our significant property and equipment additions may not generate a positive return.
d) We depend almost exclusively on our relationships with third-party programming providers and
broadcasters for programming content, and a failure to acquire a wide selection of popular programming
on acceptable terms could adversely affect our business.
e) We depend on third-party suppliers and licensors to supply necessary equipment, software and
certain services required for our businesses
f) Spectrum cost and availability and regulation may adversely affect our business, financial condition
and operating results.
g) Certain of our businesses that offer mobile telephony and data services rely on the radio access
networks of third-party wireless network providers to carry our mobile communications traffic.
h) Failure in our or third-party technology or telecommunications systems, leakage of sensitive customer
data, or security breaches could significantly disrupt our operations, reduce our customer base and
result in fines, litigation or lost revenue.
a) We have not historically paid any cash dividends, and we may not pay dividends consistently or at all
on any class of our ordinary shares.
b) The loss of certain key personnel could harm our business.
c) It may be difficult for a third-party to acquire us, even if doing so may be beneficial to our
shareholders.
d) The enforcement of civil liabilities against us may be more difficult.
e) We are exposed to the risks arising from widespread epidemic diseases in the countries in which we
operate, such as the outbreak of COVID-19, which could have a material adverse impact on our business,
financial condition and results of operations.
f) Geopolitical conflicts, energy shortages and other adverse incidents beyond our control could
adversely affect our revenue and results of operations.
SAIL
a) Volatility in Steel Prices
b) Stiff Competition in International Market in respect of specific Product Mix may impact plans for
Revenue generation and Growth from Exports.
C) Disruption in Supply of Imported Coking Coal.
a) Inadequate Supply of Raw Material
b) Possible Shortage of Water Supply may lead to Disruption of Operations at IISCO Steel Plant
c) Challenges to Ramp up Production of Iron Ore
d) Non-availability of Spare Parts/Critical Spares due to restriction on Import from China
a) Impact of MMDR Amendment Act, 2021 on Non- operational Mining Leases
b) Impact on Chiria Iron Ore Leases being in No-Mining Zone
c) Revocation of the Prospecting License (PL) Grant Order for Thakurani Block-A by the Government of
Odisha
d) Delay in Grant of Stage-II Forest Clearance by MoEFCC
e) Delay in Grant of Clearance for Selling Iron Ore from Jharkhand Mines
f) Delay in Allocation of Suitable Coking Coal Blocks in lieu of Surrendered Sitanala and Parbatpur
Coking Coal Blocks
a) Brand Misuse
SMS
Metering and grid-scale batteries supply chain
The Group relies on a limited number of critical suppliers for meters and grid-scale batteries, and
failure of critical suppliers could have significant operational and financial implications.
• Delays in importing meters and grid-scale batteries
• Stock shortages and inability to fulfil customer orders or projects on time
• Business continuity issues
• Increased commodity prices
• Legal and financial exposure
• Unenforceable contracts and financial penalties
Speed of organisational change (near term)
Speed of organisational growth in the short term without sufficient and appropriate growth in
infrastructure.
• Insufficient engineering capacity/resource available
•Limitations on organisational back-office and support functions
• Metering supply and warehousing operations cannot meet demand
• IT infrastructure does not scale up quickly

Our people
An inability to attract, retain and motivate the right people could have a material adverse effect on
the business and ultimately lead to a failure to deliver on its strategic objectives.
• High levels of employee turnover
• Loss of employees with specialist skill sets to competitors
• Low employee morale
• Failure to take advantage of emerging business opportunities
• Lack of business continuity
Funding and working capital management
Suitable funding arrangements are critical to enable the continued growth of our asset portfolio,
particularly in relation to ‘CaRe’ assets. Poor management of core elements of working capital,
particularly during peak activity periods, could lead to inability to meet creditor requirements and
cause a negative financial impact.
• Default on debt obligations
• Credit or debt facilities are withdrawn
• Inability to meet existing customer or trade commitments
• Increased supply chain costs
• Lack of funding to take advantage of emerging business opportunities (including for CaRe assets)
Loss of ESG-related and regulatory accreditations
Loss of accreditations or failure to comply with key regulatory requirements could lead to an
inability to deliver our core services, leading to a loss of revenue or reduction in banking facilities.
Not achieving our ESG or regulatory accreditations
• Inability to conduct business
• Financial penalties
• Reputational damage
• Loss of trained and qualified engineers
• External investigation(s) and/or audits
Major incident risk
A major incident could occur, with severe consequences for people, the environment, revenue
and company reputation.
•Injury or loss of life
•Loss of business operations
•Financial penalties or lost revenue
•Reputational damage
•Breach of IT systems and loss of data

COVID-19
The ongoing development of COVID-19 globally presents a risk to the business, with the Group’s
primary concern being the welfare of its people, customers and end consumers.
• Health and wellbeing of workforce, customers and consumers
• Short-term financial constraints
• Business continuity issues
• Cessation of non-essential travel
• Potential detrimental impact on the supply chain
• Delayed and/or slow delivery of the Group’s contracted pipelines in smart meters and grid-scale
batteries
• Counterparties could default on contractual obligations

Stability of energy suppliers

Rising wholesale energy costs could result in multiple energy suppliers entering administration or
becoming insolvent, leading to unpaid debts and loss of pipeline revenue.
• Customers (energy suppliers) enter administration or become insolvent
• Unpaid debts not transferred as part of the SoLR process are irrecoverable
• Loss of contracted smart meter order pipeline and future revenue potential

Potential breach of cyber security

Critical information technology systems could be subject to a major external or internal cyber-
attack, causing a breach of information security regulations and/or service disruption.
• Financial penalties under information security regulations
•Financial loss
•Unauthorised access to systems and data
•Service disruption
•Loss of customer and/or supplier confidence
•Loss of accreditations and certifications

Business continuity and disaster recovery – resilience of IT infrastructure and failure of critical
business systems and processes
Failure of core and/or critical information technology systems could result in operational
interruption.
• Temporary loss of IT infrastructure/critical business systems and processes
• Loss or corruption of data
• Detrimental impact on customer service
• Potential loss of revenue through inability to meet customer orders or issue invoices
Tata Steel
The prolonged inflationary pressures and dynamic macro-economic scenario may have an adverse impact on
global steel demand. Changing customer preferences are triggered by adoption of newer grades of steel and
sustainable steel products.
Mitigation Strategies
− Redistribution of sales mix, at the geography/segment level, to balance demand supply requirements
− Focus on Value-Added Products (VAP) to drive differentiation
− Diversified portfolio of product offerings beyond steel

Geopolitical developments, changes in market dynamics and volatility in raw material prices may pose risks to
availability of raw materials, that may lead to higher costs/cash outflows and working capital.
Mitigation Strategies
− Changing prices of coal and iron ore generally reflect through adjustments in steel prices
− Implementation of group-wide commodity hedging using financial instruments
− Diversified coal sourcing to ensure reliability of supplies and mitigate geographical concentration risk
Rising uncertainty in extreme weather conditions, natural disasters, equipment failures create disruptions to
manufacturing processes. Also, Tata Steel UK has specific issues of ageing assets. This may have the potential to
impact the Company’s operations, safety, and customer service levels.
Mitigation Strategies
− Setting up of Asset Management Development Centre (AMDC) for enabling predictive analytics to identify
potential failures and operational downtime
− Robust disaster plan and standard operating processes
− Prioritisation of capital expenditure in Tata Steel UK for high-risk assets nearing end-of-life
− Evaluation of all scenarios about the future configuration of the TSUK business

The supply chain network is adversely impacted by evolving geopolitics-related disruptions. Also, emerging ESG
norms may have an adverse impact on supply chain performance. Dependence on common logistics
infrastructure resources like ports and railways, poses capacity and availability constraints.
Mitigation Strategies
− Long-term contracts, strong hedging strategy for shipping and bunkers
− Implementation and enforcement of Responsible Supply Chain Policy Framework
− In India, we have long-term partnership agreements with Dhamra and Paradip ports and are developing our
own port – Subarnarekha. Our focus is on improving rake availability by investing in private freight train
schemes of Indian Railways
Tata Steel has ₹84,893 crore of debt as of March 31, 2023 and aspires to nearly double its capacity in India, to
40 MnTPA by 2030. The plan is to deleverage further and pace the growth in line with internal accruals.
However, high cost of borrowing due to tightening of policy rate cycle coupled with geopolitical and energy
crisis in Europe may impact our capex and deleveraging plans. The company is exposed to currency volatility. In
addition, the evolving climate change regulations and disclosure standards could reduce access to capital and
increase the cost of funding.
Mitigation Strategies
− Balance between growth and deleveraging
− Focus on driving operating efficiency and cash generation
− Robust capital allocation strategy
− Improvement in ESG disclosures
− Development of a sustainable financing framework
− Forex hedging to manage currency volatility
The regulatory landscape in the metals & mining industry is becoming stringent owing to factors such as
geopolitical conditions, changing trade patterns, enhanced focus on Environment Social Governance (ESG)
aspects. Non-adherence to such stringent regulatory ecosystem may impact business operations and
reputation.
Mitigation Strategies
− Focus on Research & Development for technology transformations as a proactive approach towards
regulatory compliances
− Investment in capacity building and training of resources for creating awareness on emerging regulations and
applicable compliances
There are growing expectations of the communities proximate to our operating locations. Moreover, there is
pressure of local communities due to concerns over emissions from our coal-based facilities in Europe. Inability
to address expectations may lead to loss of reputation, fines and license to operate/business continuity.
Mitigation Strategies
− Multiple structured forums for dialogue with communities
− Commitment towards addressing societal challenges through Corporate Social Responsibility initiatives
− Tata Steel Nederland BV is actively pursuing measures through ‘Roadmap Plus’ programme to reduce
emissions and address concerns of communities at IJmuiden

Steel industry is inherently prone to hazards affecting workmen's health and safety which may adversely impact
business continuity and reputation.
Mitigation Strategies
− Committed to zero harm by strengthening safety management and governance mechanism to bring safety-
focussed culture
− Adoption of various robotic and technical solutions to eliminate man-machine interface
− Set up of Practical Safety Training Centre for improving risk perception among workforces

The Company’s increased reliance on digital technologies brings exposure to cyber-attacks that may affect
business operations.
Non-compliance to stringent IT legislations and regulations may lead to imposition of penalties and adverse
impact on the Company's reputation.
Mitigation Strategies
− Adoption of strong IT security measures
− Zero Trust Architecture for validation at every stage of digital interaction
− Implementation of policies and procedures to ensure integrity of cyber security interventions
Disclosure - f-114
Vedanta
Challenges in Aluminium and Power business
Impact: Our projects have been completed and may be subject to a number of challenges during
operationalisation. These may also include challenges around sourcing raw materials and infrastructure-
related aspects and concerns around ash utilisation/evacuation

Discovery risk
Impact: Increased production rates from our growth-oriented operations create demand for exploration
and prospecting initiatives so that reserves and resources can be replaced at a pace faster than depletion.
Failure in our ability to discover new reserves, enhance existing reserves or develop new operations in
sufficient quantities to maintain or grow the current level of our reserves could negatively
affect our prospects. There are numerous uncertainties inherent in estimating ore and oil and gas reserves,
and geological, technical, and economic assumptions that are valid at the time of estimation, may change
significantly when new information becomes available

Loss of assets or profit due to natural calamities

Impact: Our operations may be subject to a number of circumstances not wholly within the Group's
control. These include damage to or breakdown of equipment or infrastructure, unexpected geological
variations or technical issues, extreme weather conditions and natural disasters – any of which could
adversely affect production and/or costs.

Cairn-related challenges
Impact: Cairn India has 70% participating interest in Rajasthan Block, the production sharing contract (PSC)
of which was valid till 2020. The Government of India has granted its approval for a 10-year extension at
less favourable term, pursuant to its policy for extension of Pre-New Exploration and Licensing Policy (NELP)
Exploration Blocks, subject to certain conditions. Ramp-up of production compared with what was
envisaged may impact profitability
Price (metal, oil, ore, power, others), currency and interest rate volatility
Impact: Prices and demand for the Group's products may remain volatile/uncertain and could be
influenced by global economic conditions, natural disasters, weather, pandemics, such as the COVID-19
outbreak, political instability, and so on. Volatility in commodity prices and demand may adversely affect
our earnings, cash flow and reserves.
Our assets, earnings and cash flow are influenced by a variety of currencies due to our multi-geographic
operations. Fluctuations in exchange rates of those currencies may have an impact on our financials.

Major project delivery

Impact: Shortfall in the achievement of stated objectives of expansion projects, leading to challenges in
achieving stated business
milestones – existing and new growth projects.

Access to capital
Impact: The Group may be unable to meet its payment obligations when due or may be unable to borrow
funds in the market at
an acceptable price to fund actual or proposed commitments. A sustained adverse economic downturn
and/or suspension of its
operations in any business, affecting revenue and free cash flow generation, may cause stress on the
Company's ability to raise
financing at competitive terms.
Regulatory and legal risk
Impact: We have operations in many countries around the globe. These may be impacted because of legal
and regulatory changes in the countries in which we operate, resulting in higher operating costs, and/or
restrictions such as the imposition or increase in royalties or taxation rates, export duty, impact on mining
rights/bans, and changes in legislation
Health, safety and environment (HSE)
Impact: The resources sector is subject to extensive health, safety and environmental laws, regulations and
standards. Evolving requirements and stakeholder expectations could result in increased costs or litigation
or threaten the viability of operations in extreme cases. Large-scale environmental damage is amongst the
top 10 risks, as per the World Economic Forum’s Global Risk Report 2023 for the next 2 years, which can
lead to global policy changes

Emissions and climate change Climate change mitigation and adaption failure is ranked amongst the top 10
risks as per World Economic Forum’s Global Risk Report 2023 over the next 2 years to 10 years. Our global
presence exposes us to a number of jurisdictions in which regulations or laws have been, or are being,
considered to limit or reduce emissions. The likely effect of these changes could be to increase the cost of
fossil fuels, imposition of levies for emissions in excess of certain permitted levels and increase
administrative costs for monitoring and reporting. Increasing regulation of greenhouse gas (GHG)
emissions, including the progressive introduction of carbon emissions trading mechanisms and tighter
emission reduction targets, is likely to raise costs and reduce demand growth

Managing relationship with stakeholders

Impact: The continued success of our existing operations and future projects is partly dependent on the
broad support and healthy relationships with our local communities. Failure to identify and manage local
concerns and expectations can have a negative impact on relations and, therefore, can affect the
organisation's reputation and social licence to operate and grow

Tailings dam stability

Impact: The release of waste material can lead to loss of life, injuries, environmental damage, reputational
damage, financial costs and production impacts. A tailings dam failure is considered to be a catastrophic
risk – i.e., a very high severity, but very lowfrequency event and is a continuous risk. Hence, it receives the
highest priority

Breaches in IT/cybersecurity
Impact: Like many global organisations, our reliance on computers and network technology is increasing.
These systems could be subject to security breaches resulting in theft, disclosure, or corruption of
key/strategic information. Security breaches could also result in misappropriation of funds or disruptions to
our business operations. A cybersecurity breach could impact business operations
JSPL risk missing

1 Investment & acquisition risk

2 Global trade practice & confilict risk
3 ESG compliance & risk
4 Risk associated with global demand
5