Risk and opportunities
Our governance framework ensures clear accountability for our risk management strategy through a balanced bottom-up and top-down approach, overseen by the Board and the statutory Risk Management Committee (RMC).
Chaired by an Independent Director, the RMC supervises the risk framework, reviewing policies, practices, and procedures. The Chief Risk Officer (CRO), along with Risk Coordinators and Risk Owners, strengthens the process.
The RMC addresses critical concerns through regular discussions and evaluations, holding at least one meeting annually or more as needed. Key outcomes and recommendations are presented to the Board and documented in stock exchange reports, ensuring transparency and accountability.
They set the tone at the top, promoting a culture of transparency and effective risk management. They periodically review the risk management framework and address key threats to ensure the Company remains resilient and prepared.
The Committee monitors internal and external environments to assess the Company’s risk exposure, provides guidance through risk evaluation and management procedures, oversees the implementation of the Risk Management Plan, and reviews controls and systems to recommend improvements.
The officer acts as the custodian of the risk management process, ensuring its effective execution across all business functions. They oversee coordination between the RMC and business units to drive efficient risk management practices.
They are trained individuals responsible for identifying and understanding risks within their areas, communicating them to the CRO, and implementing mitigation measures in line with the risk management framework.
Our Enterprise Risk Management (ERM) framework follows a structured approach to identifying, assessing, monitoring, and mitigating risks, ensuring a proactive and systematic risk management process.
Financial Capital
Manufactured Capital
Intellectual Capital
Human Capital
Social and Relationship Capital
Natural Capital
E&S Impact of Products and Services
Climate Change, Adaptation and Mitigation
Land Use and Biodiversity
Energy Management
Waste & Recycling
Water Use
Carbon Emission
Pollution
Energy Security and Accessibility
Community Relations
Human Capital Management
Occupational Health and Safety
Data Privacy and Security
Human Rights
Product Quality & Safety
Innovation, Patents, and Technology Transfer
Corporate Governance
Risk and Crisis Management
Customer Satisfaction
Sustainable Sourcing
Sustainable Supply Chain
Grievance Redressal Mechanisms
Infrastructure Development
Gas Sourcing and Volume Enhancement
Cost Leadership through Digital First Approach
Responsible Corporate Citizenship
Preparing for Low Carbon Future
Regulatory and Compliance Risk
The CGD business operates under the regulatory oversight of PNGRB and MoPNG, requiring adherence to evolving regulations from time to time. Changes in these regulations and market conditions can significantly impact the Company’s operations.
Also, being a listed entity, it is required to comply with SEBI’s Listing Obligations and Disclosure Requirements. Non-compliance with this will lead to a penalty.
Secretarial team have a compliance framework to monitor and track various regulations, using Legatrix Software to monitor compliance.
Business Risk
Our natural gas supply for CNG and domestic sectors is sourced partly from GAIL, based on prevailing domestic gas allocation and pricing guidelines of MoPNG, the balance requirement is sourced from the market. Gas for Commercial and Industrial segments is also sourced from the open market. Any increase in natural gas prices, reduction in domestic allocation, or inability to source gas may negatively affect our business, operations, and cash flows.
Competition Risk from Alternative Fuels
Loss of volume and customer base, resulting in reduction of revenue and profitability.
Project Risk
Disruptions to our network infrastructure for sourcing and supplying natural gas could negatively impact our business, reputation, operations, and cash flow. Delays in commissioning new filling stations due to regulatory approvals or other factors could also affect our prospects and financial outcomes.
Technology Risk
Mechanical faults, natural disasters, and fires can disrupt operations and cause revenue loss, while data loss can hinder efficiency. Cyberattacks like viruses and ransomware can lead to financial losses and reputational damage.
Market Entry Risk
Our growth prospects may be negatively impacted if our strategy to enter new market fails. This approach requires significant skills, resources, and time, and failure to execute it effectively could adversely affect our business, operations, and financial health.
Health and Safety Risk
Operating with natural gas, a highly combustible fuel, presents risks such as gas leaks, fires, or explosions if procedures are not followed. Such incidents could damage materials, cause injuries, and harm our brand image and public perception, in addition to financial losses.
Reputational Risk
The Company’s reputation, shaped by internal and external stakeholders' perceptions, is critical to its long-term sustainability and growth. Reputation risks, if not managed well, can negatively affect brand value, stakeholder trust, financial performance, and talent acquisition. They can also increase the likelihood of regulatory non-compliance, leading to legal consequences and penalties.
Financial Risk
Impact on Credit quality, cost of borrowing, delay in implementation of projects.
Impact on operations, financial losses, misstatement of accounting records.
Policy Stability Risk
The risk of policy revisions, regulatory changes, or withdrawal of existing approvals due to shifts in the policy landscape. Such changes could impact operational stability and long-term business strategies.
Policy uncertainties can reduce the attractiveness and growth prospects of the sector, potentially causing delays or disruptions in project execution. Additionally, it may also lead to increased operational challenges, affecting overall business stability.
Human Resource Risk
The loss of key talent can lead to disruptions in business operations, increased recruitment and training costs, and a decline in productivity and employee morale, ultimately affecting long-term growth and stability.
We, at ATGL, have an internal mechanism to monitor and track the attrition. We have MIS as well as HR binder through which we monitor. We also interact with such employees and try to understand their actual reason for leaving and try to pursue for retaining them.
We recognise the potential impact of climate risks – both physical and transitional – on our operations and business value. To enhance resilience, we have fortified our pipeline network, implemented a robust Emergency Response Management System, and continuously monitor climate risks.
Read more on Climate Risk Assessment Report
