The Principles of the Risk Management System at TGC-1
The risk management policy of TGC-1 is an effective combination of measures for limitation of risks undertaken by the Company, and mitigation, avoidance, and re-distribution of the risks that the Company considers to be unacceptably high. The objective of the operation of the risk management system at TGC-1 is to reduce the likelihood of a negative result and limitation of potential losses of TGC-1 if the risks become a reality.
The risk management process 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 by 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.
In 2013, the following measures are planned within the framework of development of the risk management system:
- continued re-engineering of the risk management system of TGC-1 in order to increase its efficiency;
- begin implementation of a risk management system establishment project at St. Petersburg Heating Grid, a key subsidiary.
Main Risks Profile
