FAQ

This section provides answers to a number of the most common questions on the organization of risk management in RusHydro (hereinafter, the Company).



What is included in the concept of risks of the Company?


Risk means the impact of uncertainty on the goals of the Company. Such goals may include various aspects (financial, security, environmental impact, etc.) and belong to various levels (strategic, organizational, project, process, etc.).


What are the goals of implementing an internal control and risk management system?


The corporate system of internal control and risk management of the Company was introduced in order to:

  • preserve and efficiently use the resources and potential of the Company and ensure the continuity of the Company;
  • decrease unforeseen events and losses in economic activities of the Company;
  • adapt the Company to changes in the internal and external environment in a timely fashion;
  • ensure the effective functioning of the Company and its sustainability and development prospects;
  • ensure the degree of compliance of the Company with the requirements of regulatory legal acts regulating the activities of the Company.


What guided the Company in implementing the internal control and risk management system?


The corporate system of internal control and risk management of the Company was developed in accordance with the following requirements and recommendations:

  • GOST R ISO 31000-2010. National standard of the Russian Federation. "Risk management. Principles and guidance";
  • GOST R ISO/IEC 31010-2011. National standard of the Russian Federation. Risk management. Risk assessment methods,
  • International Standard ISO 31000 2nd edition 2018-02 "Risk Management – Guidance";
  • Risk Management Standard of the Federation of European Risk Management Associations (FERMA);
  • Corporate Governance Code recommended by Bank of Russia Letter No. 06-52/2463 dated April 10, 2014
  • recommendations of the Committee of Sponsoring Organizations of the Treadway Commission (COSO);
  • Bank of Russia recommendations on the implementation of the Corporate Governance Code (Bank of Russia Letter No. 06-52/2463 dated April 10, 2014);
  • recommendations of the Ministry of Finance of Russia (information of the Ministry of Finance of Russia PZ-11/2013 "Organization and implementation by an economic entity of internal control of business operation items, accounting and preparation of accounting (financial) statements").


Who is responsible for organizing risk management in the Company?


Responsibility for determining the principles and approaches to organizing the risk management and internal control system in the Company lies with the Board of Directors of the Company.

The executive bodies of the Company ensure the creation and maintenance of an effective risk management and internal control system in the Company and are responsible for the implementation of the decisions of the Board of Directors of the Company in the field of organizing the risk management and internal control system.

Responsibility for the implementation of specific risk management procedures lies with the management of RusHydro in the relevant (supervised) areas of activity.


What regulates the Company's activities in the field of internal control and risk management?


The key document defining the Company's activities in the field of internal control and risk management is the Internal Control and Risk Management Policy, approved by the Board of Directors of the Company in June 2019 in a new version (Minutes No. 291 dated June 21, 2019).

The Internal Control and Risk Management Policy is aimed at introducing and maintaining the functioning of an effective system of internal control and risk management that is in line with international best practice and the organizational structure of RusHydro Group and contributes to the achievement of the Company's goals.


What are the most important risks for the Company?


The Company considers the following risks to be the most critical:

  • Delay in Commissioning New Facilities
  • Increase in the cost of capital construction projects
  • Decrease in revenue from the sale of electrical energy and capacity relative to the business plan
  • Adverse changes/violations of law (Legal risks)
  • Man-made accidents and safety incidents at production facilities;
  • Shortage of funds, including those received from external sources (financial risks).


The indicated priority of risks is provided for in the medium term by the Strategic Risk Management Plan of the Company for 2018—2019, and in the long-term by the RusHydro Group Long-Term Development Program for 2018—2022.



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