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Risk management and internal control system

In accordance with the Regulations on the Risk Management and Internal Control System (RM&ICS) and other internal documents, the Group established a system aimed at facilitating the Group’s goals, in particular, the growth of financial stability and shareholder value, and improving the quality of corporate governance through the identification of risks, analysis of their materiality, and working out of their mitigation measures.

The RM&ICS guarantees an impartial, fair, and transparent assessment of the Group’s present situation and future prospects, the integrity and openness of reporting, the appropriateness and acceptability of risks taken. The Board of Directors takes the appropriate, required, and sufficient actions to guarantee that the present RM&ICS functions efficiently and adheres to the organisational principles and methodologies determined by the Board.

All RM&ICS entities within their competence are responsible for compliance with risk management approaches and standards, as well as for proper fulfilment of control procedures in their focus areas.

For more details on risk management, see the Risk Management section of the Annual Report.

Structure of the RM&ICS

Focus areas of the RM&ICS

Risk management
Timely identification, analysis, assessment and minimisation of risks, including development of criteria for their assessment, control over the risk management process and provision of consolidated reporting.
Integration into business processes
Introduction of risk management into business processes, distribution of responsibility between internal control subjects and development of risk mitigation mechanisms in the Company’s projects.
Control procedures
Development, optimisation and automation of control procedures, prevention of fraud and conflict of interest, and due diligence of counterparties.
Evaluation and development of the RM&ICS
Generation of system development plans, their annual performance report and proposals for improvement.
Information systems and reporting
Cleation of systems to collect and analyse data, accurate and transparent reporting, compliance with legislation and disclosure of information to strengthen the investment case.