THE LEGAL FRAMEWORK FOR CORPORATE RISK MANAGEMENT

This article is written by Rutvij Vyas of 2^nd Year of Faculty of Law, GLS University, an Intern under Legal Vidhiya

Abstract

This article explores the legal framework governing corporate risk management. The corporate risks are potential threats for the companies to achieve their goals^[1]. The corporate risk management is a systematic process through which corporations identify, analyse and reduce the corporate risks that can impact corporate operations. Corporate risk management includes risk detection, risk measure, risk monitoring and risk control. In today’s corporate world, risks include market volatility, natural disasters, cyber threats, legal compliance, distribution chains and maintaining reputation and goodwill. The legal framework for corporate risk management includes the legal provisions given under the Companies Act,2013; The Insolvency and Bankruptcy Code of 2016; and the guidelines which are provided by the Reserve Bank of India (RBI), Securities and Exchange Board of India (SEBI), The Insurance Regulatory and Development Authority of India (IRDAI). Furthermore, this article provides the judicial precedents and landmark judgements on risk management framework. The article subsequently provides the compliance and legal obligations of the companies to develop a well-structured framework on risk management, the thesis is further supported by an analysis of the Risk management report by TATA Motors Ltd. The article concludes by providing an overall summary of the legal framework for corporate risk management.

Keywords

Corporate Risk Management, Legal Framework, Compliance, Regulatory Guidelines, Companies Act, Sustainable Operations, Economic Uncertainties.

Introduction

“Risk is inherent in every business and risk and reward go hand in hand”. Risks serve as a barrier to business operations, with which businesses can’t survive. Major types of risks include Economic risks, technological risks, environmental uncertainties, and competitive factors^[2]. The legislative structure or framework for managing corporate risk plays a pivotal role in designing the corporate perspective on the complex business landscape and practices related to corporate governance. The risk management framework impacts how businesses navigate intricate terrain of risks and uncertainties in the globalized & integrated economy of the 21st Century. The world is witnessing rapid technological advancements, global economic-fiscal uncertainties, strict legal requirements and geopolitical changes; to cope with all the uncertainties it has become a strategic imperative for corporate organisations to establish effective risk management^[3]. The 21st-century world economy has witnessed several significant economic-financial downturns, these downturns can be seen in all forms of industries, from transportation to banking, from media-telecommunications to automobile, no industry is immune to inappropriate risk management framework^[4]. As it is said, the risk management framework results in higher stability and propensity and to establish its relationship, as per a research paper, “a risk management score is publicly disclosed by Bombay stock exchange- SENSEX 30 lists corporate firms, results suggests that firms with better and more comprehensive risk mitigating framework, are more likely to enjoy lower costs debt and have higher propensity to invest in intangible assets^[5]”.

The legislative aspects of the corporate risk management framework provide an important value to organizational structure. Effective risk management framework ensures compliance with laws and authorised regulations, assessing and mitigating potential risks, protection of brand reputation, strong insurance policy and enhanced confidence of shareholders. The companies can minimize un-controllable risks, and avoid hefty penalties and litigation expenses by adapting risk management framework. It also allows companies to operate within the legal boundaries, protect their assets and maintain sustainability or long-term success in business operations^[6]. The corporate risk management legal framework includes the legislations such as The Companies Act of 2013 and the Insolvency and Bankruptcy Code of 2016 and it also includes the guidelines by the statutory bodies such as the Reserve Bank of India (RBI), Securities and Exchange Board of India (SEBI), The Insurance Regulatory and Development Authority of India (IRDAI). This research document is objective to provide a detailed legal framework on background, significance/importance, challenges, solutions and future implications on corporate risk management.

Background and Significance of Corporate Risk Management

The history of corporate risk management as an academic concept can be traced back to the ancient derivatives markets and the development of financial instruments for hedging purposes^[7].  However, the order risk management framework developed post-industrial revolution era when companies tried to avoid risks using predefined frameworks. The corporate risk management is a systematic process through which corporations identify, analyse and reduce the corporate risks that can impact corporate operations^[8]. The risk management framework not only includes the financial stability risks but also includes business reputation, sustainable development of business and overall success. Corporate risk management includes risk detection, risk measure, risk monitoring and risk control. In today’s corporate world, risks include market volatility, natural disasters, cyber threats, legal compliance, distribution chains and maintaining reputation and goodwill. Failure to manage the risk can further lead the company to fiscal losses, damage to reputation, and legal liabilities which can further lead to the failure of the entire company. Therefore, it is prudent for the company to establish a well-structured framework for the well-being of the corporation.

Purpose of this Research Article

The objective of this research article is to shed light on legal frameworks for corporate risk management, key objectives of this article are:-

The purpose of this article/research paper is to shed light on the legal framework surrounding corporate risk management and its implications for businesses. It aims to provide a comprehensive understanding of the legal principles, regulations, and standards that govern risk management practices in various jurisdictions. By examining the interplay between law and risk management, this paper seeks to address the following key objectives:

1. To identify key legal obligations and responsibilities of companies to mitigate risk.
2. To spot the interplay between corporate governance frameworks and risk management frameworks.To investigate the role of the legal authorities in risk management practices.
3. To detect legal issues related to corporate risk management and to find viable solutions.

Definition and Scope of Corporate Risk Management

In the modern globalized world, the business environment encounters several uncertainties which may threaten the business operations, these uncertainties can be three to stability, growth and overall existence of the company, such uncertainties are risks. These risks stem from regulatory changes, economic fluctuations, cyber-attacks, and environmental changes. etc. It becomes the survival mechanism of companies to establish risk management frameworks^[9]. Furthermore, it becomes essential for the State to design a legal framework related to corporate risk management to ensure the well-being of society and all stakeholders. To ensure resilience and prosperity in such a multifaceted business landscape, corporates need to address these risks through a systematic and continuous framework known as “Corporate Risk Management^[10]”. The corporate risk management system involves the identification, evaluation, assessment, analysis and mitigation of risks. In the commercial world, risk is not only permanent but also natural in business operations.

The Interplay between Corporate Risk Management and Corporate Governance

Corporate governance is a set of mechanisms, processes & procedures made to govern the corporate institutions. Shailer, Greg defines the term ‘corporate governance’ in their book ‘Encyclopaedia of Business and professional ethics’ as a description of processes, structures and mechanisms that influence the control and direction of the company^[11]. Risk management is central to Corporate governance^[12]. Corporate governance has a deep role to play in the field of risk management framework. The risk management system compromises several corporate governance processes, structures and mechanisms to analyse, assess and mitigate the risks. The result of both corporate governance practices and risk management framework is to protect the interests of shareholders, ensure the sustainability of business operations and secure the longevity of business operations.

Legal Framework of Corporate Risk Management

In the 21st century, which includes the complex business environment that is impacted by multiple factors. Creating an effective risk management framework is crucial for corporate well-being and long-term sustainability. The legal framework of risk management is essential to provide a fundamental and structural approach to assess, recognise, monitor and mitigate the risks concerning parameters of legal-regulatory structure and statutory requirements. This research article provides an analytical view of the legal framework for corporate risk management. In furtherance, this article highlights key legal provisions of Indian Company law, relevant case laws and international law.

A. The Overview of the Legal Framework Governing Risk Management

The legal framework governing risk management structure is primarily included in the Companies Act of 2013 and subsequently on judicial precedents by the Supreme Court of India and The National Company Law Tribunals. The Companies Act provides for several statutory and regulatory measures for the management of risks emphasizing the significance of risk management. For instance, Section 134(3)(n)^[13] mandates the board of directors to present a formal risk management policy, including identification and assessment of risks involved and to disclose in the annual financial report as per the accounting standards mentioned under section 133. Section 177^[14] highlights the mandate of establishing an independent audit committee that reviews the risk management framework including the policies, processes and procedures created by the board of Directors. Section 178^[15] provides for the roles and responsibilities of the nomination and remuneration committee that determines the corporate risk management framework. Section 180^[16] of the act, restricts the powers of the board of directors to borrow, ensuring prudent risk management practices.

As we have studied earlier, corporate governance practices are essential to the corporate risk management framework, the Companies Act of 2013 incorporates several corporate governance practices of integrity, accountability, transparency and risk management. These corporate governance practices guide corporate organisations in managing operational risks. These practices also ensure the trust of investors and stakeholders. Apart from the Companies Act of 2013, the government of India has created several landmark legislations and regulations impacting corporate risk management.

Securities and Exchange Board of India otherwise called as SEBI, was established in the year 1988, however, it was given statutory status in the year 1992^[17]. The SEBI listing regulations impose several obligations on listed companies to establish a robust framework for corporate risk management. The SEBI regulations ensure the compliance of obligations by the companies and jeopardize the corporate houses that fail to comply with these obligations^[18].

The Parliament of India in the year 2016 enacted the Insolvency and Bankruptcy Code (IBC), 2016 to consolidate the legal provisions for insolvency and bankruptcy^[19]. The IBC includes several provisions focusing on assessing, recognising and mitigating the financial risks faced by the company. The IBC also ensures the judicious resolution of distressed companies to avoid financial risk to the market at large. The IBC has created several mechanisms for bankruptcy risk assessment framework to avoid imminent risks^[20]. The Supreme Court in the case of K. Sashidhar v. Indian Overseas Bank, A.I.R. 2018 S.C. 257, highlighted the court’s refrain from matters of IBC and its compliance are essentially regulated by the central government^[21].

The Reserve Bank of India (RBI) plays a pivotal role in governing the banking & financial sector. To mitigate the risks in the banking sector, the RBI guidelines of 2010 on “Risk Management and Inter-Bank Dealings” which is also known as “The Master Circular on Risk Management^[22]” serve as a key consolidated document for the banking risk management framework. The Master circular is objective to provide a single reference document for the risk management, the master circular provides for 4 key risk management mechanisms, they are:-.

1. Credit risk management by the banks;
2. Market risk management by banks and institutional investors;
3. Operational risk management;
4. Liquidity risk management;

The RBI guidelines mandate all financial and banking institutions to develop a robust framework to assess, identify, recognise, analyse, control and mitigate all the risks in the sector. All banks registered under the Banking Regulation Act of 1949 are required to comply with the mentioned guidelines by the Reserve Bank of India and to monitor the risk management framework to be in concurrence with other legal requirements. The RBI guidelines also include the management of credit risk with a special emphasis on its management^[23].

The bank may face legal consequences by lawful authority in the form of penalties, in case of failure to comply with the guidelines

The insurance sector plays a vital role in our economic and financial machinery,

The Insurance Regulatory and Development Authority of India (IRDAI) is a nodal body to regulate the insurance sector^[24]. The IRDAI has issued several guidelines to regulate enterprise risk management with its structural framework. The insurance companies are mandated to ensure the solvency margins and risk-based capital requirements. The IRDAI guidelines provide a mandate to identify, analyse and mitigate special industry-specific risks. The IRDAI guidelines for risk management, are essential consolidated guiding documents that serve as pivotal in the protection of the rights of insurers and insured enterprises.

In the 21st century, cybersecurity is one of the most concerning risks for corporations. To ensure a risk-free cyberplace, cybersecurity laws are made as an ensuring factor, to establish a well-structured risk management framework and eliminate the risks. The Information Technology Act of 2000 (with subsequent amendments) plays a crucial role in establishing a foundation for cybersecurity in India. This law requires organisations to implement robust cybersecurity measures. The IT Act provides for the security of sensitive data from cyber risks and data breaches, these provisions prevent cyber risks.

Therefore, we have observed that the Companies Act of 2013, SEBI guidelines, Insolvency and Bankruptcy Code of 2016, RBI guidelines, IRDAI guidelines and Information Technology Act of 2000 act as an integral component for the corporate risk management framework in India. These legislations serve as an essential piece of document to identify, analyse, mitigate and avoid the risks. By adhering to these regulations and guidelines, companies can effectively manage risks, protect stakeholders’ interests, and ensure business continuity in an increasingly complex and interconnected

B. Judicial precedents dealing with corporate risk management

The companies under the mentioned laws, regulations and all other legal instruments, are obligated to comply with the same laws, and any subsequent failure by the company may invite legal consequences. The Judiciary has ever since its inception ensured the compliance of this legal framework by the firms. For instance, in the landmark case of  Satyam Computers Services Ltd. fraud, i.e. M/S. Satyam Computer Services Limited, vs Directorate Of Enforcement^[25]; where the management of Satyam Ltd. miserably failed to establish a framework for effective risk mitigation practices in the audit department, which resulted in a massive financial fiasco. The Hon’ble Telangana High Court highlighted the significance of effective and robust internal controls and compliance to prevent a failure of corporate machinery. In another leading case of SEBI v. Sahara India Real Estate Corporation Ltd^[26], the Hon’ble Supreme Court punished the associated persons for failure to comply with SEBI norms and regulations, which also included regulatory requirements for corporate risk management. This case was crucial in the field of corporate governance and legal risk assessment as it highlighted the legal consequences of non-compliance and failure to adhere to the risk management mechanisms.

The Supreme Court of India in the case of State of Maharashtra V. Hiralal Marchand Shah (1977) clarified the legal issue related to the liability of directors in offences committed by the company. The Court highlighted the duty of the director in case of failure to exercise due diligence, this case should be viewed concerning Section 134(3)(n)  where the board is duty-bound to establish a legal framework for risk management.

In the case of Life Insurance Corporation of India (L.I.C) V. Escorts Ltd.(1986)^[27], the apex court highlighted the trust-based (Fiduciary) obligations to take actions in the best interests of the firm and its investors. The bench examined the legal responsibility of directors to take due care in managing risks that have the possibility of threatening the company’s operations. The Supreme Court of India in the case of Hindustan Lever Ltd. V. State of Maharashtra (2004)^[28], focused on the significance of lucid & consistent risk reporting practices in a company to ensure transparency and protection of the interests of shareholders.

Compliance and Legal Obligations on Risk Management Framework

Compliance means the complete alliance of various parts of the business – whether commercial, financial, or regulatory^[29]. The legal framework of corporate risk management also includes compliance with the legal and regulatory obligations established by the lawful authority.  As per a research paper, compliance with the regulatory authorities is of utmost importance for the framework of corporate risk management. It is suggested that organisations should proactively asses and identify the legal obligations or specific legal standards for risk management. The compliance efforts include practices such as:- monitoring the ongoing corporate operations concerning legal obligations, annual risk assessments under the Companies Act of 2013 and regular management training seminars ensuring their knowledge of legal obligations.

In The landmark case of United States V. WorldCom, Inc^[30]., where a renowned telecom company called “WorldCom” was alleged of auditing fraud by inflating the gross assets and their income. This fraudulent activity of the company resulted in one of the largest bankruptcies in corporate history. The Court highlighted the failure of multiple organs of the company and inadequate internal controls to assess and manage the risks. Overall the court highlighted the significance of compliance with the legal standards. Subsequently, the United States Congress passed the Sarbanes- Oxley Act of 2002, this act was objective to ensure effective corporate governance practices including compliance.

Example

Following the legal framework of risk management, it becomes essential to understand this concept with an example. For instance, the TATA Motors Ltd. board report for the year 2022-2023 included several key risks including

1. Supply chain disruptions & commodity inflation may impact the overall price and their profit-revenue ratio.
2. Uncertainties in the global economic and geopolitical environment impact their cross-border trade.

3. Post-pandemic effect on their manufacturing operations.

4. Environmental laws compliance may invite additional costs and The impact of climate change on their business operations.

5. Delay in deliveries and negative customer experiences.

6. Additional risks related to their brand reputation, human capital, innovation, technological uncertainties and financial management^[31].

Conclusion

This research article concludes by providing an intricate framework of law, governing corporate risk management.  Corporate risks are all the threats that have the potential to hinder companies’ achievement of goals and objectives. Effective corporate risk management plays a crucial role in ensuring successful operations and sustainability of the company. This article explores several crucial components involved in a company’s risk assessment framework, risk detection, recognition, risk monitoring and risk mitigation. In the dynamic corporate landscape of the twenty-first century, various risks come in several severe forms, such as cyber threats, legal compliance, distribution disruptions, threats to goodwill, and natural and environmental disasters. A robust legal framework for risk assessment is important to secure the interests of various stakeholders. This article has shed light on several aspects of the legal risk mitigation framework. The legal framework for corporate risk management includes several legislative documents. The Companies Act of 2013, provides for a consolidated set of provisions dealing with companies operating in India, with their obligations to managing risks. The Insolvency and Bankruptcy Code of 2016 also plays a crucial role in risk management in the insurance sector. The Reserve Bank of India (RBI), the Securities and Exchange Board of India (SEBI), The Insurance Regulatory and Development Authority of India (IRDAI) and several other statutory authorities have issued their guidelines and regulations for companies and institutions in different sectors such as Banking, Security Markets, Insurance sectors. etc. The guidelines serve as a valuable guiding document for sector-specific institutions in developing a well-structured risk management framework. Apart from legal documents issued by the parliament and executive wing, the judicial precedents serve significant insights related to risk management. Furthermore, this article explores the legal compliance and obligations with relevant case laws. The article explains the structural risk management framework with a practical example of TATA Motors. Ltd. Overall this article concludes at:-

A.  IT is essential for companies to ensure long-term success, by establishing a well-structured legal framework of risk management.

B. Compliance with these legal frameworks is as important as incorporating business operations.

C. The guidelines issued by various statutory bodies play a crucial role as a supportive tool, enabling companies to navigate the legal complexities of corporate risk management.

References

1. Carr, S. (n.d.). Corporate risk management. [online] www.highland.gov.uk. Available at: https://www.highland.gov.uk/info/20009/performance/795/corporate_risk_management#:~:text=The%20purpose%20of%20corporate%20risk.
2. Gibson, K. (2023). What Is Risk Management & Why Is It Important? | HBS Online. [online] Business Insights Blog. Available at: https://online.hbs.edu/blog/post/risk-management.
3. Kenton, W. (2022). Business Risk. [online] Investopedia. Available at: https://www.investopedia.com/terms/b/businessrisk.asp.
4. Ankita k, Suvera Gill, Corporate governance and risk management: a systematic review and synthesis for future research, Journal of advances in Management Research. ISSN 0972-7981. https://www.emerald.com/insight/content/doi/10.1108/JAMR-07-2022-0151/full/html
5. Joshi, H. (2018). Corporate Risk Management, Firms’ Characteristics and Capital Structure: Evidence from Bombay Stock Exchange (BSE) Sensex Companies. Vision: The Journal of Business Perspective, 22(4), pp.395–404. doi: https://doi.org/10.1177/0972262918803172.
6. Peter Mackay, and Sara B. Moeller. “The Value of Corporate Risk Management.” The Journal of Finance, vol. 62, no. 3, 2007, pp. 1379–419. JSTOR, http://www.jstor.org/stable/4622304. Accessed 4 May 2024.
7. Kumawat, V., Singh, T. and Kumari, A. (2023). Corporate Risk Management Strategies on Firm Performance. International Journal of Research Publication and Reviews Journal homepage: www.ijrpr.com, [online] 4(4), pp.1133–1135. Available at: https://ijrpr.com/uploads/V4ISSUE10/IJRPR18216.pdf [Accessed 4 May 2024].
8. Western Governors University. (2020). What Is Risk Management in Business? [online] Available at: https://www.wgu.edu/blog/what-risk-management-business2003.html.
9. IBM (2024). What is risk management? [online] www.ibm.com. Available at: https://www.ibm.com/topics/risk-management.
10. Tandon, A.L.-R. and Sharma, C. (2023). Corporate Risk Management-Possible Safeguard To Success. [online] Lexology. Available at: https://www.lexology.com/library/detail.aspx?g=e8b1d880-f9d6-447d-a82d-8baa47bf5257.
11. Shailer, G. (2018). Corporate governance. Encyclopedia of Business and Professional Ethics, pp.1–6. doi: https://doi.org/10.1007/978-3-319-23514-1_155-1.
12. Diligent Corporation. (2023). Relationship between risk management and corporate governance. [online] Available at: https://www.diligent.com/resources/blog/relationship-between-risk-management-and-corporate-governance#:~:text=Risk%20management%20is%20important%20in [Accessed 20 Apr. 2024].
13. Companies Act Integrated Ready Reckoner Companies Act 2013|CAIRR. (n.d.). Section 134. Financial statement, Board’s report, etc. [online] Available at: https://ca2013.com/134-financial-statement-boards-report-etc/ [Accessed 20 Apr. 2024].
14. Section 177 of the Companies act,2013; Audit committee
15. Section 178 of the Companies Act,2013 ; Nomination and Remuneration Committee & Stakeholders Relationship Committee
16. Section 180 of the Companies Act of 2013; Restriction on powers of board
17. WHAT IS SEBI? (n.d.). Business Standard India. [online] Available at: https://www.business-standard.com/about/what-is-sebi.
18. Securities and Exchange Board of India (2024). [online] Sebi.gov.in. Available at: https://www.sebi.gov.in/sebi_data/commondocs/cirmfd15_h.html [Accessed 20 Apr. 2024].
19. Das, S. (2024). Shaktikanta Das: Insolvency and bankruptcy code – towards achieving full potential. www.bis.org. [online] Available at: https://www.bis.org/review/r240117f.htm.
20. Hati, S. (n.d.). THE ROLE OF THE INSOLVENCY AND BANKRUPTCY CODE, 2016 IN MODELLING AN INTEGRATED BANKRUPTCY RISK ASSESSMENT FRAMEWORK FOR BUSINESSES. [online] Indian Journal of Integrated Research in Law Indian Journal of Integrated Research in Law. Available at: https://ijirl.com/wp-content/uploads/2022/03/THE-ROLE-OF-THE-INSOLVENCY-AND-BANKRUPTCY-CODE-2016-IN-MODELLING-AN-INTEGRATED-BANKRUPTCY-RISK-ASSESSMENT-FRAMEWORK-FOR-BUSINESSES.pdf [Accessed 20 Apr. 2024].
21. K. Sashidhar v. Indian Overseas Bank, A.I.R. 2018 S.C. 257(India)
22. Reserve Bank of India (n.d.). Reserve Bank of India. [online] www.rbi.org.in. Available at: https://www.rbi.org.in/commonman/English/Scripts/Notification.aspx?Id=546 [Accessed 20 Apr. 2024].
23. Garg, A. (2018). RBI Requirements relating to Risk Management in Banks – iPleaders. [online] iPleaders. Available at: https://blog.ipleaders.in/rbi-risk-management/ [Accessed 20 Apr. 2024].
24. ref. Hariharan, B.R., Sailaja, V.N. and Patel, K.V. (2017). A Study of Disclosures on Risk Management of Life Insurance Companies in India. Indian Journal of Finance, 11(1), p.29. doi: https://doi.org/10.17010/ijf/2017/v11i1/108959.
25. WAMP.No.155 of 2016 in W.A.No.133 of 2013
26. AIR 2012 SC 3829, 2012 (10) SCC 603, 2012 AIR SCW 4923,
27. 1986 AIR 1370, 1985 SCR SUPL. (3) 909,
28. AIR 2004 SUPREME COURT 326, 2003 AIR SCW 6238
29. STUDY MATERIAL PROFESSIONAL PROGRAMME GOVERNANCE, RISK MANAGEMENT, COMPLIANCES AND ETHICS MODULE I PAPER 1 RELEVANT FOR DECEMBER, 2019 SESSION ONWARDS. (n.d.). Available at: https://www.icsi.edu/media/webmodules/GOVERNANCE_RISK_MANAGEMENT_COMPLIANCES_AND_ETHICS.pdf.
30. 352 F. Supp. 2d 472 (S.D.N.Y. 2005)
31. ref. TATA Motors (n.d.). Risk management Navigating headwinds with confidence. [online] Available at: https://investors.tatamotors.com/financials/76-ar-html/pdf/risk-management.pdf.

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^[1] Carr, S. (n.d.). Corporate risk management. [online] www.highland.gov.uk. Available at: https://www.highland.gov.uk/info/20009/performance/795/corporate_risk_management#:~:text=The%20purpose%20of%20corporate%20risk.

^[2] Gibson, K. (2023). What Is Risk Management & Why Is It Important? | HBS Online. [online] Business Insights Blog. Available at: https://online.hbs.edu/blog/post/risk-management.

^[3] Kenton, W. (2022). Business Risk. [online] Investopedia. Available at: https://www.investopedia.com/terms/b/businessrisk.asp.

^[4] Ankita k, Suvera Gill, Corporate governance and risk management: a systematic review and synthesis for future research, Journal of advances in Management Research. ISSN 0972-7981. https://www.emerald.com/insight/content/doi/10.1108/JAMR-07-2022-0151/full/html

^[5] Joshi, H. (2018). Corporate Risk Management, Firms’ Characteristics and Capital Structure: Evidence from Bombay Stock Exchange (BSE) Sensex Companies. Vision: The Journal of Business Perspective, 22(4), pp.395–404. doi: https://doi.org/10.1177/0972262918803172.

^[6] Peter Mackay, and Sara B. Moeller. “The Value of Corporate Risk Management.” The Journal of Finance, vol. 62, no. 3, 2007, pp. 1379–419. JSTOR, http://www.jstor.org/stable/4622304. Accessed 4 May 2024.

^[7] Kumawat, V., Singh, T. and Kumari, A. (2023). Corporate Risk Management Strategies on Firm Performance. International Journal of Research Publication and Reviews Journal homepage: www.ijrpr.com, [online] 4(4), pp.1133–1135. Available at: https://ijrpr.com/uploads/V4ISSUE10/IJRPR18216.pdf [Accessed 4 May 2024].

^[8] Western Governors University. (2020). What Is Risk Management in Business? [online] Available at: https://www.wgu.edu/blog/what-risk-management-business2003.html.

^[9] IBM (2024). What is risk management? [online] www.ibm.com. Available at: https://www.ibm.com/topics/risk-management.

^[10] Tandon, A.L.-R. and Sharma, C. (2023). Corporate Risk Management-Possible Safeguard To Success. [online] Lexology. Available at: https://www.lexology.com/library/detail.aspx?g=e8b1d880-f9d6-447d-a82d-8baa47bf5257.

^[11] Shailer, G. (2018). Corporate governance. Encyclopedia of Business and Professional Ethics, pp.1–6. doi: https://doi.org/10.1007/978-3-319-23514-1_155-1.

^[12] Diligent Corporation. (2023). Relationship between risk management and corporate governance. [online] Available at: https://www.diligent.com/resources/blog/relationship-between-risk-management-and-corporate-governance#:~:text=Risk%20management%20is%20important%20in [Accessed 20 Apr. 2024].

^[13] Companies Act Integrated Ready Reckoner Companies Act 2013|CAIRR. (n.d.). Section 134. Financial statement, Board’s report, etc. [online] Available at: https://ca2013.com/134-financial-statement-boards-report-etc/ [Accessed 20 Apr. 2024].

^[14] Section 177 of the Companies act,2013; Audit committee

^[15] Section 178 of the Companies Act,2013 ; Nomination and Remuneration Committee & Stakeholders Relationship Committee

^[16] Section 180 of the Companies Act of 2013; Restriction on powers of board

^[17] WHAT IS SEBI? (n.d.). Business Standard India. [online] Available at: https://www.business-standard.com/about/what-is-sebi.

^[18] Securities and Exchange Board of India (2024). [online] Sebi.gov.in. Available at: https://www.sebi.gov.in/sebi_data/commondocs/cirmfd15_h.html [Accessed 20 Apr. 2024].

^[19] Das, S. (2024). Shaktikanta Das: Insolvency and bankruptcy code – towards achieving full potential. www.bis.org. [online] Available at: https://www.bis.org/review/r240117f.htm.

^[20] Hati, S. (n.d.). THE ROLE OF THE INSOLVENCY AND BANKRUPTCY CODE, 2016 IN MODELLING AN INTEGRATED BANKRUPTCY RISK ASSESSMENT FRAMEWORK FOR BUSINESSES. [online] Indian Journal of Integrated Research in Law Indian Journal of Integrated Research in Law. Available at: https://ijirl.com/wp-content/uploads/2022/03/THE-ROLE-OF-THE-INSOLVENCY-AND-BANKRUPTCY-CODE-2016-IN-MODELLING-AN-INTEGRATED-BANKRUPTCY-RISK-ASSESSMENT-FRAMEWORK-FOR-BUSINESSES.pdf [Accessed 20 Apr. 2024].

^[21] K. Sashidhar v. Indian Overseas Bank, A.I.R. 2018 S.C. 257(India)

^[22] Reserve Bank of India (n.d.). Reserve Bank of India. [online] www.rbi.org.in. Available at: https://www.rbi.org.in/commonman/English/Scripts/Notification.aspx?Id=546 [Accessed 20 Apr. 2024].

^[23] Garg, A. (2018). RBI Requirements relating to Risk Management in Banks – iPleaders. [online] iPleaders. Available at: https://blog.ipleaders.in/rbi-risk-management/ [Accessed 20 Apr. 2024].

^[24] ref. Hariharan, B.R., Sailaja, V.N. and Patel, K.V. (2017). A Study of Disclosures on Risk Management of Life Insurance Companies in India. Indian Journal of Finance, 11(1), p.29. doi: https://doi.org/10.17010/ijf/2017/v11i1/108959.

^[25] WAMP.No.155 of 2016 in W.A.No.133 of 2013

^[26] AIR 2012 SC 3829, 2012 (10) SCC 603, 2012 AIR SCW 4923,

^[27] 1986 AIR 1370, 1985 SCR SUPL. (3) 909,

^[28] AIR 2004 SUPREME COURT 326, 2003 AIR SCW 6238

^[29] STUDY MATERIAL PROFESSIONAL PROGRAMME GOVERNANCE, RISK MANAGEMENT, COMPLIANCES AND ETHICS MODULE I PAPER 1 RELEVANT FOR DECEMBER, 2019 SESSION ONWARDS. (n.d.). Available at: https://www.icsi.edu/media/webmodules/GOVERNANCE_RISK_MANAGEMENT_COMPLIANCES_AND_ETHICS.pdf.

^[30] 352 F. Supp. 2d 472 (S.D.N.Y. 2005)

^[31] ref. TATA Motors (n.d.). Risk management Navigating headwinds with confidence. [online] Available at: https://investors.tatamotors.com/financials/76-ar-html/pdf/risk-management.pdf.

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