The Company is aware of considerable operating and financial
risks, which it is susceptible to in the course of its activity
performance, and considers the process of their management to be
the most important element for taking and carrying out managerial
decisions aimed at the reduction of a probability of occurrence of
an unfavourable result and the limitation of potential losses.
The risk management process is organized in the Company by
the following scheme: risk identification, comprehensive risk
impact assessment, evaluation of relation of costs and benefits for
all possible methods of response, and choice and accomplishment
of a risk response method.
The most appropriate risk management strategy has been chosen
and maintained toward all known to the Company risks at any
instant of time, namely: risk avoiding, risk reduction, risk sharing,
and risk taking.
The risk management process represents an integrated approach at
all levels of the Company’s organizational structure. The Board of
Directors and Committees of the Board of Directors carry out the
risk strategic management. General Director and Board Members
take collegial decisions on the form and methods of risk
management at the operating level. The Internal Inspection and
Audit Department carries out current monitoring and assessment
of efficiency of the risk control procedure.
The Company improves the enterprise risk management on a going
basis and works for identification of risks and response to them at
the earliest possible stage. In 2010, the Unified Integrated Register
of Company’s Risks was formed; the priorities in risk management in
accordance with their probability and potential losses were defined
and structured in the form of a Risk Profile. The Risk Profile is
changed in its content as far as new external and internal potential
hazards to efficient operation of the Company emerge.
The most promising trends of the further development of the
Company’s risk management are as follows: setting-up and
regulation of the Company’s key business processes, improvement
of the techniques of internal audit and risk management.
The assessment procedures with respect to all detected substantial
risks were carried out and the steps for their reduction down to the
admissible level were taken within 2010.
