Strengthening Resilience through Strategic Risk Management
Our Risk Management strategy deeply aligns with our commitment to build an organisation that can withstand and respond proactively to risks and adversities. A comprehensive ERM framework, reviewed annually by the Board, provides a holistic view of risks across our diverse businesses and enhances resilience and goodwill through effective monitoring, controls, and mitigation measures, while enabling timely identification and capitalisation of new and emerging opportunities.
RISK GOVERNANCE HIERARCHY AT CAMS
CAMS ERM FRAMEWORK
Cybersecurity Risk
Risk Type
CAMS operations is largely digital and relies on continuous interaction with extensive volumes of client data. The inability to sufficiently protect this data from cyberthreats or uphold highest privacy standards could adversely affect our reputation and cause financial losses.
How we manage it
A robust cybersecurity policy, governed by our IT and IT Strategy Committee, is in place and is regularly reviewed and audited by internal and external teams, including external specialist firm.
Undermentioned advanced solutions have been implemented to further strengthen our cybersecurity strategy:
- Darktrace Enterprise Immune System: Proactively monitors and detects unpredictable threats using world-class machine learning algorithms.
- Enterprise Security Assessment Solution (SAFE): Constantly evaluates multiple vectors of security. Current score as on March 31, 2026 is 4.5 out of 5.
- Endpoint Detection Response (EDR) Solution: Identifies and responds to unknown cyber threats or abnormal behaviours on endpoint devices such as desktops and laptops by leveraging AI and ML algorithms.
Materiality mapping
Innovation and IT Deployment, Stability of Systems and Processes, Data Protection and Cyber Security, Client Relationships, Governance and Risk Management.
Operational Risk
Risk Type
Errors or omissions in our operations pose a significant risk and may result in substantial harm to reputation and financial losses.
How we manage it
Our data capture quality consistently exceeds 99% from the perspective of transaction accuracy, achieved through combination of double data entry, multiple checkers, systemic validations, etc.
The "Work To Finish" Dashboard – Consolidated MIS clearly highlights daily pendencies, effectively monitoring work that needs to completely on the same day and avoiding delivery delays.
Senior management's sustained focus on continued automation, risk mitigation systemic projects, and digitalising manual processes further mitigates operational risks.
Materiality mapping
Competition Landscape, Innovation and IT Deployment, Stability of Systems and Processes, Talent Attraction, Retention and Development, Governance and Risk Management
Regulatory Risk
Risk Type
CAMS businesses are subject to multiple regulatory compliances and periodic audits from authorities like SEBI, IRDAI, PFRDA, RBI, and MCA, with any non-compliance resulting in observations which can expose it to warnings, penalties, and even cancellation of licenses.
How we manage it
The mutual fund business is guided by a centralised team which supports real-time tracking of known observations, ensuring compliance and rectification, if required.
Other than audits initiated by the clients, CAMS-appointed internal auditors ensure regular audits and provide reports on a concurrent basis.
RAID (Risk Assurance through Inspection and Detection), a recently introduced verification method, along with risk review by the Risk Team, ensures critical observations by the regulators.
Materiality mapping
Governance and Risk Management, Conduct and Ethical Practices, Regulatory Compliance
Compliance Risk
Risk Type
CAMS must adhere to and comply with various regulations including timely reporting to government agencies and regulators and fulfilment of regulatory requirements without errors. Inability to do so may result in fines and penalties.
How we manage it
An experienced and expert compliance team ensures extensive interpretation and implementation of systemic solutions and explores automation opportunities.
Error-free operations is ensured through continuous monitoring and testing of control effectiveness.
Comprehensive audits, initiated by CAMS, clients or regulators, act as a third layer of defence and provide compliance assurance.
Materiality mapping
Governance and Risk Management, Conduct and Ethical Practices, Regulatory Compliance
Concentration Risk
Risk Type
Delivering superior client experience is becoming exceedingly important to ensure client satisfaction and retention. Given the limited number of clients serviced and their evolving expectations, the Company faces concentration risk, which may adversely impact its revenue.
How we manage it
Proactive diversification into new lines of businesses over the last few years has resulted in a significant part of the overall revenue being contributed by non-mutual fund businesses.
The client satisfaction survey results, ability to attract new MF clients, technology, and product innovation have all contributed to higher customer satisfaction scores.
Materiality mapping
Competition Landscape, Innovation and IT Deployment, Client Relationships, Talent Attraction, Retention and Development