Key risk factors
The Company’s goals in risk management are:
- Reduction of possibility and/or consequences of an event with negative influence on goal achievement;
- Establishment of priorities in Company’s activities on the basis of existing risks, including financial risks;
- Retention of assets and efficient usage of resources;
- Achievement of target indicators;
- On-going improvement of efficiency of operations in all spheres by analyzing and evaluating existing risks;
- Provision of reliable operations of Russian grid sector;
- Achievement of optimal efficiency of risk management system in the Company and its SACSubsidiary and associated companys;
- Timely and detailed informational and analytical support of processes related to decision-taking and planning of activities by the Company and its SACSubsidiary and associated companys.
Decisions related to risk management taken by the senior managers of the Company comply with current Russian legislation and enable reasonable correlation of positive effect and incurred costs. Executing risk management solutions the Company regularly analyzes its practical efficiency. The Company emphasizes the following risk management procedures:
- Insurance of property, production facilities and transport, civil responsibilities, medical insurance and other types of insurance.
- Diversification of market channels to distribute consumer shares in overall consumption structure.
- Refusal to cooperate with unreliable contractors.
- Diversification of procurement of materials, inventories, equipment and services to lower dependence of the Company from stand-alone contractors.
- Refusal to implement high-risk investment projects.