Reliance Industries has an established risk management framework to identify, assess, and monitor risks across its diverse business operations. The framework uses a three lines of defense approach involving business managers, a risk management function, and internal audit. Key risks include strategic, financial, compliance, health and safety risks. Reliance oversees risks through board committees and maintains insurance policies. It aims to minimize risks of foreign exchange fluctuations, liquidity issues, and interest rate changes through its financial risk management.

1. RELIANCE’S RISK
MANAGEMENT FRAMEWORK
Harshith A S

2. AGENDA
Introduction
Enterprise Risk Management at Reliance
Governance Framework
Risks and Response
Financial Risks
Equity Risks
Insurance – Risk Mitigation
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3. INTRODUCTION
• Reliance Industries Limited (RIL) is an Indian multinational conglomerate company founded by Dhirubhai
Ambani in 1966.
• Headquartered in Mumbai, Maharashtra, India,
• it operates in various sectors including petrochemicals, refining, oil and gas exploration,
telecommunications, retail, and media.
• RIL is one of the largest publicly traded companies in India by market capitalization and revenue
• Some of the notable subsidiaries of Reliance Industries include Reliance Retail, Jio Platforms, Reliance
Petroleum, Reliance Industrial Infrastructure, and Reliance Power.
• Reliance Industries has won several awards and accolades over the years, including the Fortune Global
500 list, the Forbes Global 2000 list, and the Economic Times Awards for Corporate Excellence
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4. ENTERPRISE
RISK
MANAGEMENT
AT RELIANCE
• The Group’s motto, ‘Growth is Life’, aptly
captures the ever-evolving spirit of Reliance.
• It also presents multiple opportunities and risks
that are managed through the robust Risk
Management Framework.
• The framework helps the Group identify,
assess, respond to and monitor, on a real-time
basis, risks that impact business objectives.
• Risk management is an integral component of
the Reliance Management System.

5. ENTERPRISE RISK MANAGEMENT AT RELIANCE
PERFORMANCE
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The Company has a well-established “Three Lines of Defense” approach:
• Business/Process Managers (Self-verification, first line of defense)
• Risk Management Function (Functional Assurance, second line of defense)
• Internal Audit and Management Assurance Function (Independent Assurance, third line of defense)

6. THE COMPANY IS PRONE TO THE FOLLOWING
CATEGORIES OF RISK:
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• Strategic and commercial risks
• Health, safety and environment risks
• Compliance and control risks
• Financial risks

7. GOVERNANCE FRAMEWORK
Reliance’s Risk Management Framework is designed to be a
simple, consistent and clear framework for managing and
reporting risks from the Group’s operations to the Board.
The Board provides oversight through various Risk and
Executive Committees
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8. GOVERNANCE FRAMEWORK
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9. RISKS AND RESPONSE
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• Climate Change and the Energy Transition
• Commodity Prices and Markets
• Customer Experience and Retention
• Oversight over Investee Companies/Alliances
• Talent to Support Scaling Business
• Data Privacy Risk
• Cybersecurity Risk
• Health, Safety and Environmental (HSE) Risks in Operations
• Safety and Environmental Risks During Transportation
• Physical Security and Natural Calamity Risks
• Regulatory Compliance Risks

10. FINANCIAL RISKS
LIQUIDITY RISK
Cross markets, central
banks almost immediately
pressed into action and
significantly eased monetary
and credit conditions.
INTEREST RATE RISK
Reliance borrows funds from
domestic and international
markets to meet its long-term
and short-term funding
requirements. It is subject to
risks arising from fluctuations in
interest rates. As central banks
maintained easy and
accommodative monetary
policies, interest rates across
the world dropped very sharply
FOREIGN EXCHANGE
RISK
Reliance prepares its financial
statements in the Indian rupee,
but most of the payables and
receivables of the
Hydrocarbon business are in
US dollars, minimising the cash
flow risk on account of
fluctuations in foreign exchange
rates. Reliance avails long-term
foreign currency liabilities
(primarily in USD, Euro and
JPY) to fund its capital
investments.
RIL also avails short-term
foreign currency liabilities to
fund its working capital.
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11. RELIANCE INDUSTRIES BETA: 0.98
Beta is a statistical measure that compares the volatility of a stock against the volatility of
the broader market, which is typically measured by a reference market index.
Reliance Industries Limited shows a Beta of 0.99.
This is very close to 1. The volatility of Reliance Industries Limited according to this
measure is consistent with the market volatility.
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EQUITY
RISK

12. INSURANCE – RISK MITIGATION
Reliance maintains insurance cover for properties on All Risk basis, including against
Act of God perils (flood, earthquake, cyclone, tsunami etc.), business interruption and
third party liability. The Company covers the properties on full sum insured basis on
replacement value. It also maintains various other types of insurance, such as
Erection All Risk for its major capital expenditures projects, Directors’ and officers’
liability, transit cover, charterers’ liability cover and employee benefit insurance
policies. The scope of coverage, insurance premiums, policy limits and deductibles
are in line with the size of the company and its nature of business.
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13. THANK YOU
Harshith A S
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