Risk management
Risk management system
The risk management system (RMS) is a set of risk management components (culture, competences, methodology, practices, resources), methods, and processes integrated into the Company’s strategic planning and operational management and designed to achieve its strategic and operational objectives.
The RMS relies on the following international and national standards:
- COSO ERM 2017 Conceptual Framework for Enterprise Risk Management: Integrating with Strategy and Performance;
- ISO 31000:2018 Risk Management;
- GOST R ISO 31000-2019 Risk Management.
The Company identifies and monitors risks on an ongoing basis, assessing the effectiveness of its risk management measures and using, among other things, the Company’s emerging opportunities for business development and value growth.
- Defining principles and approaches to risk management system organisation
- Approving the general policy on risk management, risk appetite, Corporate Risk Map, and key risk management plans
Preliminary consideration and preparation of recommendations on matters to be reviewed by the Board of Directors
Ensuring efficient risk management for the Group
Risk manager- General coordination of RMS implementation and functioning
- Development of the RMS methodology
- Consolidation of information and reporting
- Drafting risk profiles
- Work in 1C: Risk Management
- Methodological RMS-related support to Group employees
Risk identification as part of their duties
Evaluation of the risk management system efficiency
Key RMS functioning principles:
- alignment with targets;
- continuity;
- integration and transparency;
- RMS participants’ awareness;
- reasonable degree of formalisation and documenting;
- continuous adaptation and development;
- reasonable distribution of responsibilities and powers;
- relevance and expediency;
- training and incentives;
- common methodological procedures.
Development of risk management system
We keep improving our risk management system to timely respond to changes, both external and internal, maintain strong performance and increase efficiency amid risks and uncertainty.
The RMS is developing in line with an approved plan to 2023.
The following steps were taken in 2022 to improve the efficiency of risk management and introduce a comprehensive risk-based approach to decision-making:
- we developed new risk reporting formats, including a risk register, risk profiles, risk matrix, etc.
- we updated local regulations on risk management;
- we selected and trained risk experts from among our employees;
- we defined risk appetite for 2023;
- we continued to identify and assess new risks and maintained a company-wide risk database relying on 1C: Risk Management.
Priority areas for the strengthening of risk management include:
- integrating risk management into key processes, such as investment planning, budgeting, and risk management in operating and financial activities;
- improving risk data quality by unifying, standardising and automating risk management processes;
- making information exchange more effective.