Risks in grids

Operating and technological risks influencing supply reliability are related mainly to high depreciation of facilities, failures in exploitation and operating modes of equipment, failures to execute repair in full

Internal control and risk management system is an element of our corporate governance system. It includes a range of procedures, methods and mechanisms of control created by the BoD and executive bodies of the Company to ensure efficient internal control over the Company’s operations. The key goals of the system are efficient implementation of strategic and shareholder goals, increased quality of corporate governance system and increased operating and investment efficiency.

The system is polished on all management levels of the Company. Preliminary control (risk management system) includes revelation, appraisal and control of risks (threats and possibilities) with a view to efficient implementation of strategic and shareholder goals as well as revelation and management of risks related to economic and energy preparedness. Current control includes regulation and standardization of business processes and determination of control procedures and responsibility of business process participants on management levels. Subsequent control includes the audit of financial statement authenticity, asset preservation, correspondence of financial and economic operations to the legislation, charter, local regulatory documents, internal audit of business process arrangement efficiency and internal control and risk management system, control over the observation of the corporate ethics, anti-corruption control.

With a view to develop IC&RMS the BoD approved the Internal Control Policy, Risk Management Policy, Guidelines on Risk Management and Corporate Ethics Code. Local regulatory documents stipulate a distributed model of the system establishing responsibility in the following way: The Board of Directors establishes the directions for the development of internal control and risk management system, the Audit Committee supervises its efficiency. The Internal Audit and Risk Management Department conducts audit and directly estimates the efficiency of internal control and risk management system, corporate governance system as well as subsequent control procedures. Besides, the department arranges and coordinates the preparation of reports on risks, ensures the submission of information on risks and internal control procedures to stakeholders. The executive bodies are responsible for the arrangement of efficient current and preventive control procedures and implementation of local regulatory documents of the system. The senior officers (owners of business processes) are responsible for the establishment and execution of control procedures and risk management activities as well as for timely identification of evaluation of risks.