Hiranya Infratech Ltd is a prominent player in infrastructure sector, specializing in the construction of high-speed highways, metro rails, toll plazas, and expressways in Eastern India. Despite being a fast-growing enti

Hiranya Infratech Ltd is a prominent player in infrastructure sector, specializing in the construction of high-speed highways, metro rails, toll plazas, and expressways in Eastern India. Despite being a fast-growing entity, the Company has recently encountered a series of systemic failures. Media reports have frequently highlighted heavy fines imposed on the Company for non-compliance with various laws and regulations. This regulatory friction, combined with a string of lost business tenders, has led to a significant erosion of the Company's reputation and market share. The Company is currently grappling with a spectrum of risks. To address the situation and to develop a time-bound corrective action plan, the CEO convened a high-level meeting with all functional heads and the Head of Risk Management. The leadership team identified that risk management must transition to a core management tool integrated into the Company's strategy. The Company now aims to implement a comprehensive internal control system that moves beyond simple protection to a process of detailed risk management across all functions. In one of the Board meetings, Binak, an independent director, during discussions, provided detailed insights on risk management. He explained to the Board, that all organisations, no matter how big or small, public or private, should practise risk management by implementing appropriate system of internal controls. Effective risk management procedures promote accountability, performance evaluation and compensation and they can boost productivity throughout the entire organisation at all levels. A thorough knowledge and comprehension of the organisation (internally and externally) and the business processes are necessary for risk management. Better risk management strategies offer early warning signs so that the problem can be solved quickly. Traditional concepts solely viewed natural disasters like fires, earthquakes and floods as risks and they presumptively reduced those risks by maintaining safeguard equipment and other measures. However, new and different kinds of hazards have evolved as a result of the fast-paced developments in technology, business dimensions and complexity, regulatory changes and environmental concerns. Therefore, managing different forms of risks has become crucial in the age of the rapidly evolving global economy, numerous regulatory compliances, cross-border commercial activities and the need to maintain the survival, viability and sustainability of businesses. The Company's strategy incorporates risk management as part of its overall organisational strategy. The goal of risk management is to enable an organisation to minimise losses and maximise possibilities by establishing detailed processes and procedures. Based on the above, answer the following questions: Explain the inter-dependent scope of risk-management and internal control.