Risk Management

Infosys’ business philosophy is known as PSPD. It is based on four elements-

• Predictability,

• Sustainability,

• Profitability and

• De-risking.

The ability to identify, measure and manage risk is embedded in our corporate governance frameworks, control systems and reporting mechanisms as well as individual relationship and engagement models.

The Board of Directors is responsible for monitoring risk levels on various parameters and the management council ensures implementation of mitigation measures. The disclosure committee monitors the risks periodically. The risk management structure is designed to cascade to the line managers so that risks at the transactional level are identified and steps are taken to mitigate risk in a decentralized manner. A comprehensive and integrated risk management framework forms the basis of all the de-risking efforts in Infosys. Prudential norms aimed at limiting exposures are an integral part of this framework. Formal reporting and control mechanisms ensure timely availability of information and facilitate proactive risk management. The framework seeks to address the following risks that management believes can be actively addressed through corporate action:

Macro economic factors

• Competition

• Concentration of revenues

  • Service offerings

  • Clients

  • Industry

  • Geography

Organization management

Finance

• Exchange rates

• Liquidity

• Leverage

Regulatory and legal compliance

• Contractual commitments

• Statutory compliance

• Conformity with local laws

• Intellectual property

• Immigration

Systems and processes

• Leadership development

• Human resource management

• Process and project management

• Internal control systems

• Security and business continuity

• Currency of technology

At the level of an individual engagement / project, our approach to risk management addresses issues such as effort estimation (to ensure that adequate time and resources are available to deliver on the job), scoping (so that the bounds of the engagement are well and consistently understood by us and the client), staffing (to ensure that the right skills are available to do the job well), communication, connectivity, change management, escalation, internal reviews, client reporting to ensure visibility into progress, hurdles etc. to create a buy-in from all stakeholders.