Enterprise
Risk
Management

We use the ‘three lines of defense’ framework to ensure comprehensive risk governance. While our Board of Directors provides high-level oversight, the Risk Management Committee (RMC) of the Board is dedicated to overseeing risk management and internal controls. They review and endorse the risk portfolio and set our risk appetite with an awareness of global impacts and interdependencies. The committee meets twice a year to assess management’s actions, ensuring our response is both proactive and informed.

The Risk Management Cross Functional Team is responsible for the overall risk management process at Lupin. This team is composed of risk owners representing key risks, who convene as needed to review risk mitigation measures, monitor changes in risk exposure, and make necessary adjustments to our risk appetite. Detailed reports on risks and mitigation strategies are shared within this team and reported to the RMC. On the ground, our functional and locational teams work in close collaboration with the individual risk owners to periodically review risks and ensure that the risk mitigation plans are effectively executed.

Our independent internal audit unit conducts annual audits to verify that our policies align with the company’s risk strategy. To remain in line with global standards, we invite external experts every two years to review our audit processes. To align our approach with international best practices, we are working towards ISO 31000 Risk Management Certification.

Strengthening Our Risk Culture

We provide regular and customized training programs on risk management for the Board of Directors and the Risk Management Committee (including Non-Executive Directors) to enhance their understanding of risk management practices and ensure informed decision-making.

To ensure that employees at all levels are not only aware of potential risks but also equipped with the necessary skills to assess and respond to these risks effectively, we provide multiple risk awareness training programs, skill upgradation sessions, and interactive workshops at our corporate offices and manufacturing sites with risk experts throughout the year. We are dedicated to building a culture where everyone feels empowered to speak up about potential risks. Employees can report concerns directly to their leaders or through the office of the Ombudsperson, which ensures each report is handled with care and professionalism. All employees and contractors are encouraged to identify and report various potential risk expressions, including near-miss incidents, changes in market dynamics, and updates in statutory and regulatory requirements. For instance, recognizing occupational health and safety as a primary concern, we have integrated incentives like the EHSAAS Awards and the Spirit of Lupin Awards to promote vigilance and reporting in this critical area. We also incorporate a thorough risk management process while developing new products or services to ensure both safety and compliance.