Page 48 - InterloopAnnualReport2020

Risk Management Policy

The Board of Directors is responsible for developing and The Audit Committee monitors financial and regulatory
monitoring the Risk Management Policy to determine compliance risks and the internal audit function provides
the Company’s level of risk tolerance. The Policy aims independent and objective analysis of Company’s controls
at management of risks by identifying them early on and and governance processes. The Human Resource &
minimising their impact on the business through mitigation Remuneration Committee reviews succession planning for
strategies. The Board of Directors carried out an in-depth availability of adequate competent human resource for key
analysis of the major risks faced by the Company business Company operations and also assesses compensation
that could threaten the business model, future performance, programmes to evaluate the risk of escalation of expense on
solvency or liquidity of the Company. The types of risks Salaries & wages.
include strategic, commercial, operational, and financial
risks which have been identified along with the nature of The responsibility for monitoring and control of risks has
their impact and likelihood of occurrence, and the mitigation been delegated to the management of the Company.
strategies to manage these risks. The Management Committee (MC), comprising the CEO
and senior management of the Company is responsible
Risk Governance for supervising risk identification and management &
implementation of the policy & procedures, all across
the organization. All Functions of the Company identify
The Company Board of Directors is also responsible for and evaluate risks related to their areas, devise suitable
establishing an effective risk management framework mitigating strategies and report any modifications or
and provides oversight through the Board Committees.
additions to MC, on regular basis.

Risks & Mitigation Strategies

Risks Source Nature Mitigation Strategies

Interloop Limited regularly participates and provides valuable inputs
to regulatory bodies, government trade and economic committees,
Political and Impact: H think tanks and advocacy bodies. We continue to monitor the
Economic Likelihood: H impact of government policies on Pakistan’s economy at large
Instability
Strategic External production opportunities to minimize impact of political instability
and textile sector in particular. We continue to optimize country of

Regulatory Impact: M Our Corporate and Legal Affairs and EHS teams continue to
closely monitor any regulatory changes advised by SECP, Excise
Regime Likelihood: M & Taxation, FBR, Customs and Labour Dept. and take appropriate
measures accordingly

*High= H, Medium=M, Low= L

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