PJSC RusHydro is improving the risk management system in the following areas:
- an assessment of the development level of corporate risk management systems of the Group's subsidiaries and affiliates and the development of an integral indicator of this assessment;
- Working out the program for the development development and improvement of the RusHydro Group's risk management system based on the carried out assessment;
- Regulation of risk management processes in the Group's subsidiaries and affiliates on the basis of approaches implemented in JSC RusHydro;
- Integration of risk management systems into planning and decision-making processes in the Group's subsidiaries and affiliates;
- Development of an end-to-end system for collecting reports on the risk management of the Group's companies and aggregating information on risk management at the parent company's level using the automated risk management system of PJSC RusHydro;
- Typification of risk control procedures in all companies of the Group;
- Performance of annual re-assessments of the development levels of risk management systems in the Group's companies to update the integrated assessment of the systems;
- Introduction of a motivation system for quality risk management and disclosure of information on the risks;
- Automation of management procedures as concerns collection of information on risks, activities and risk indicators for the Group, performing a regular assessment of the effectiveness of risk management activities.
In accordance with these areas, the detailed Risk Management System Development Action Plan for RusHydro Group has been worked out in JSC RusHydro.
Activities are formed according to the orientation of effects:
- Management principles,
- Corporate procedures,
- Management of the holding structure (application to subsidiaries and affiliates).
The following activities were carried out as part of the risk management system improvement:
- The register of strategic risks of PJSC RusHydro is updated based on the data of the automated system of internal control and risk management, which allowed increasing the share of quantitative risk assessments and reducing the need for expert opinion;
- The process of building the risk management system of PJSC RAO ES EAST is being carried on, by analogy with the approaches introduced in the Company. The Internal Control and Risk Management Policy in PJSC DEK and PJSC DGC, JSC Yakutskenergo was updated, the Registers and Strategic Risk Management Plans of PJSC DEK and PJSC DGC, JSC Yakutskenergo were approved and are updated on a regular basis
- The Registers and Strategic Risk Management Plans in subsidiaries and affiliates (design institutes, general contractors of construction and assembling operations, subsidiaries and affiliates engaged in IT, subsidiaries and affiliates engaged in sales) implementing investment projects are approved and updated on a regular basis, also owners of risks and responsible for collecting and updating information are appointed;
- The Regulations on the Management of the Internal Control System of PJSC RusHydro were approved (February 2016)
- The Long-Term Group Development Program (hereinafter referred to as “the LTGDP”) was updated. As part of updating the LTGDP, a scenario of the analysis of risks and opportunities of RusHydro Group is implemented, taking into account their impact on the Group's strategic goals and KPIs, the Group's risk register for the planning period is made based on the result of the above analysis. The updated LTGDP until 2020 (with a perspective until 2025) is approved by the Board of Directors in November 2016;
- In order to conduct an analysis of reliability of the actual performance indicators of the Group's activity in 2016, it is planned to conduct a preliminary audit of the LTGDP implementation;
- In November 2016, the Company's Management Board approved the Company's Risk Management Plan with the indication of risk owners for 2016 - 2017;
- A unique IT product was developed and put into operation - the automated system Customer of Affiliates (the Company's intellectual property, the Certificate of Rospatent was obtained in July 2014) was developed and put into operation.
- In April-June 2016, the maturity of the Internal Control and Risk Management System (ICRMS) is assessed
At this stage, the maturity level of the Company's ICRMS can be assessed as developing. The concept of building and improving the Company's integrated effective ICRMS, which is being implemented, in terms of reducing headcount of staff provides for a risk-based approach to internal control, building a vertically integrated system of the Company's internal control subjects, ensuring maximum involvement of the owners of the business processes, as well as the Company's structural units in this activity by appointment of internal controllers in the business processes directly responsible for the organization of the process of ICRMS functioning within the relevant divisions of the Company, as well as the optimization of cooperation of the subjects of internal control with the Risk Management and Control Department (RMCD) providing methodological support, monitoring and coordination of the internal control subjects' activity within ICRMS.
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