Risk Management Milestones and Methods
The list of risk management methods and approaches is defined by the Control and Risk Management Policy (approved by the revised Decision of the PJSC RusHydro Board of Directors, Minutes No. 291 of June 21, 2019):
The main document defining the process of shaping the strategic risk management plan in 2019 and the corresponding performance indicator (KPI) is the RusHydro Group Regulation on Strategic Management.
According to the RusHydro Group Regulation on Strategic Management, the Group shall annually compile a log of strategic risks, defining the risk owners; this log shall be approved by the Management Board of the Company. For risks classified as critical and material, the Management Board shall approve an action plan for strategic risk management which determines the timing, responsible persons and expected results. The execution of measures for managing strategic risks is taken into account as part of the approved KPI when rewarding employees. Monitoring of plan execution and oversight of its implementation is carried out by the Company's risk managers.
A report on the actual implementation of the strategic risk management action plan shall be prepared by the Risk Control and Management Department at the end of the reporting period and submitted to the Chairman of the Management Board for approval.
In addition, risk managers shall regularly interact with the Audit Committee under the RusHydro Board of Directors within the framework of its oversight of the functioning of RusHydro's risk management system, which is in line with the Methodological Recommendations on Audit Committees under the Boards of Directors of Joint Stock Companies in Whose Authorized Capital the Russian Federation Participates (approved by Order No. 86 of the Federal Property Management Agency dated March 20, 2014).
According to the Corporate Management Code, the RusHydro Board of Directors (Audit Committee) shall analyze and evaluate the functioning of the risk management and internal control system at least once a year. The results of this analysis and evaluation shall be considered at a meeting of the Board of Directors (Audit Committee).
In 2019, the RusHydro Board of Directors noted positive dynamics in the development of the internal control and risk management system relative to early 2018.
Shares / ADR