Risk Frequency Severity Strategies Appropriate

technique
Strategic Risk high low The Company is currently Loss prevention
selling urea at prices mush
Decline in international lower than the imported
Urea prices allowing for urea by approximately PKR
imports impacting 700 per bag.
Company’s market share
Commercial Risk low low The Company enjoys a retention
strong brand and loyal
Oversupply in local Urea customer base and currently
market leading to price holds 34% market share of
competition and decline local Urea Sales. The
in market share Company will continue to
invest in brand development
and long-term customer
relationships.
Financial risk low high For credit sales, majority of Non-insurance
the credit sales are secured transfers
Defaults by Customer in against Bank guarantees by
settlement of their minimum A+ rated
obligations towards the Banks. Credit limits are
Company defined for each
guarantor bank to limit
concentration of risks.
Operational Risk high high Capital Investment in Avoidance
compression facilities made
Reduced gas pressure in 2018 which will sustain
affecting ability of the pressure for the next two
plant to run at full years.
capacity
Political / Economic high low The Company continuously Loss prevention
Risks monitors market dynamics
and its cost structures
Influence of the and ensures that product
Government over price pricing is reflective of the
regulations same

Identifying Loss Exposures