KOLKATA: State-run Coal India will hire a consultant to assess the risks facing the company and its subsidiaries and develop a response strategy, according to its chairman, S Narsing Rao.
"We need to know what kind of risks CILBSE 0.58 % (Coal India) faces, including strategic, technological, environmental and social, and what actions need to be taken in the short, medium and long term to shield the company from such risks," Rao told ET, adding that the aim is to ensure uninterrupted supply of fuel to its clients.
To achieve this goal, the company plans to start enterprise risk management (ERM) programmes within the organisation with the help of a consultant.
"We also need to find out the risk appetite and tolerance limits of the company," the chairman said.
The development comes at a time when the government is planning to sell another 10% stake in the coal monopoly. The Kolkata-based company faces some lawsuits and allegations of unfair trade practices.
Coal India is the world's largest coal miner by output and has about 3.57 lakh employees. It meets most of the country's coal requirement through its 462 mines, 270 of which are underground, 169 opencast and 23 mixed. The coal monopoly has nine subsidiaries, including one in Mozambique.
Given the size of the company, the consultant will be given a year to submit its report.
"ERM has proven its effectiveness as a tool for competitiveness and enhancement in overall efficiency, helping the business to grow strategically with innovation through application of proactive information. CIL intends to formalise and institutionalise ERM across the company," a senior CIL executive said.
The consultant will also help CIL develop a risk portfolio that will be a repository of all significant business and process risks.