Page 66 - InterloopAnnualReport2021

TYPES OF RISK RISK SOURCE NATURE MITIGATION STRATEGIES

Interloop continues to provide sustainable employment to
more than 25,000 people. We have stringent workplace
Internal Impact: M standards in place complying with international labor
Attrition Rate Likelihood: L laws, however, we aim to go beyond the minimum, break
the class barriers and empower our team members,
providing an equitable, inclusive and respectable
workplace, keeping our people motivated and engaged.
Interloop depends heavily on Information Technology for
Operational its business therefore an IT Risk Management Framework
is followed to mitigate IT Risks. IT policies and controls
are in place and IT Security is addressed using tools and
techniques to secure infrastructure, applications, and

documented while the resiliency and support for business
Cyber Security External Impact: L data. IT Security and incidence response procedures are
continuity are ensured through a disaster recovery site,
Risk Likelihood: L real-time data replication, and periodic testing. Data
backup policies exist as per best practices to protect
against data loss. An IT Program Management unit exists
to mitigate IT program execution risks. A Digital Agenda
has been formulated and is being executed to protect
against technology obsolescence. Technology operations
are delivered by a team of ITIL-certified professionals.

The company is a net exporter so the devaluation of
Impact: L PKR has a positive impact overall. However, to manage it
Currency Risk effectively, the company closely monitors sentiments and
Likelihood: M market moves and from time to time uses different kinds
of derivatives to minimize the risk

The company’s interest rate risk arises from long-term
financing, short-term borrowings, loans and advances
Monetary Impact: M to subsidiary companies, and bank balances in saving
Policy accounts. The company management pro-actively
Changes Likelihood: M manages its financial planning and carefully crafted its
portfolio of barrowing through utilizing LTFF/ILTFF and
ERF to avoid any adverse impact of monetary policy
Financial External The company’s exposure to credit risk and impairment

losses relates to its trade debts. This risk is mitigated by

Credit Risk/ Impact: M the fact that the majority of our customers have a strong
financial standing and we have a long-standing business
Market Risk
Likelihood: L relationship with all our customers. We do not expect
non-performance by our customers; hence, the credit risk
is minimal.

The company management is diligently managing its
cash flow stream and carefully crafted its portfolio of
Impact: L investment and barrowing. The management thoroughly
Liquidity Risk reviews key financial ratios and adjusts its strategy, which
Likelihood: L keeps the company in financial discipline. Additionally, the
company maintains enough reserve along with sufficient
funded lines from the Financial Institutions.

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