10. Risk Management
The goal of TGC-1’s risk management system is to reduce a probability of occurrence of unfavorable results and the limitation of potential losses of TGC-1 in case of possible TGC-1’s losses under TGC-1’s risks in its production, financial, economic and other activities.
The risk management process is organized in TGC-1 is based on the following principles:
- Identification of all important risks of TGC-1 by developing and updating the Risk Profile on a regular basis,
- Division of the areas of responsibility for specific risk management between bodies, management and functional divisions of TGC-1,
- Definition of the common policy of the Company with regard to the risk management as defined y TGC-1’s Board of Directors,
- Each functional division of TGC-1, responsible for specific risks management ensures full range of actions on a regular basis, aimed at risk management: identification of new risks and monitoring of the situation for earlier identified risks, in case considering the risk level to be extremely high (subject to minimizing process) – comprehensive evaluation of the possible impact on the risk, assessment of cost and profit for various scenarios, selection and implementation of the risk management processes (in line with the general Company’s policy),
- Selection and maintaining the most appropriate risk management strategy towards the main risks (risk avoiding, risk reduction, risk sharing and risk taking), and timely changing of the strategy (shall the external conditions of general Company’s policy towards these risks change),
- Prompt reaction to newly identified risks and to the earlier identified risks approaching the parameters (levels) which are defined by authorized bodies or management of TGC-1 to be extremely high (unacceptably high),
- Risk-oriented internal audit of TGC-1’s business processes and independent analysis of TGC-1’s efficiency in risk management,
- Decision/making by TGC-1’s Board of Directors on the launch of large investment projects (in compliance with international project management standards) based on the overall analysis of the information about possible risks.
TGC-1 is trying to establish an integrated risk management system which should enhance the decision-making, development, implementation and control processes in compliance with the powers and functions allocation between all TGC-1 management levels.
The following actions are planned for 2012:
- Analysis of the existing TGC-1 regulations in order to summarize and systematize all standards of TGC-1 related to risk management,
- Re-engineering of the risk management system,
- Developing general documentation on the risk management issues.
TGC-1’s Main Risks Profile as of the end of 2011
