Frequently asked questions

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


What does the concept of the Company’s risks include?


Risk means the adverse effect of uncertainty on the Company’s objectives, where the objectives may contain various aspects (financial, security, environmental impact, etc.) and different levels (strategic, organizational, project, process, etc.).



What are the objectives of the implementation of the internal control and risk management system?


The corporate internal control and risk management system of the Company was implemented for:

  • preservation and effective use of the Company’s resources and potential, ensuring the continuity of the Company’s operations;
  • reduction of the number of unforeseen events and losses in the Company’s economic activities;
  • timely adaptation of the Company to changes in the internal and external environment;
  • ensuring the effective functioning of the Company, its sustainability and development prospects;
  • ensuring the degree of the Company’s compliance with the requirements of regulatory legal acts regulating the Company’s activities.


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


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

  • GOST R ISO 31000-2010 “Risk Management. Principles and Guidance”;
  • recommendations of the Committee of Sponsoring Organizations of the Treadway Commission (COSO);
  • recommendations of the Bank of Russia on the implementation of the Corporate Governance Code (Letter of the Bank of Russia No. 06-52/2463 of 10.04.2014);
  • recommendations of the Ministry of Finance of the Russian Federation (information of the Ministry of Finance of the Russian Federation ПЗ-11/2013 “Organization and implementation of economic facts of economic activity by an economic entity, accounting and preparation of (financial) reporting”).


Who is responsible for the organization of risk management of the Company?


Responsibility for determining the principles and approaches to the organization of the risk management and internal control system in the Company is borne by the Board of Directors of the Company.

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

Responsibility for the implementation of specific risk management procedures is borne by the management of PJSC RusHydro in the relevant (supervised) areas of activity.



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


The key document determining 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 (Minutes No. 227 of 16.11.2015).

The internal control and risk management policy is aimed at implementing and maintaining an effective internal control and risk management system consistent with international best practices, the organizational structure of the RusHydro Group and contributing to the achievement of the Company’s business objectives.



What are the most important risks for the Company?


As the most critical, the Company considers the following risks:

  • risks of implementation of capital construction projects;
  • decrease in revenue from the sale of electricity and power in relation to the business plan;
  • adverse changes/violations of the laws;
  • technogenic accidents;
  • scarcity of funds, including those received from external sources, to carry out planned investments.
The indicated priority of risks is envisaged in the medium term by the Strategic Risk Management Plan of the Company for 2016-2017, and in the long term by the Long-term Development Program of the RusHydro Group.