The main document defining the goals, objectives and principles of RusHydro Group's risk management is the Internal Control and Risk Management Policy.
The main goal of the Policy is to determine the mandatory ICRMS principles and develop common approaches to the implementation of internal control and risk management processes in RusHydro Group.
A methodology based on the risk appetite of RusHydro Group has been prepared to develop the Internal Control and Risk Management Policy approved by the decision of the RusHydro Board of Directors.
The methodology makes it possible to determine the optimal balance between risks and opportunities when meeting operational and investment objectives to achieve the goals of RusHydro Group.
The activities of RusHydro Group are subject to uncertainty, which is associated with the possible impact of risks in the future. In order to reduce the negative impact of potential risk factors and to take advantage of favorable opportunities, RusHydro group has established a risk management system aimed at implementing the RusHydro Group Development Strategy for the period up to 2020 with a perspective up to 2025.
The following diagram shows the participants of the Internal Control and Risk Management System of the RusHydro Group, as well as their horizontal and vertical interaction.
The Company's risk management policy:
The main document defining the goals, objectives and principles of operation of the RusHydro Group corporate risk management system is the Control and Risk Management Policy (hereinafter, the Policy). The Policy defines the goals, objectives, principles of operation of the RusHydro group and the distribution of responsibilities and powers of RusHydro Group ICRMS participants, providing reasonable confidence in achieving the goals approved by the RusHydro Group Development Strategy for the period up to 2020 with a perspective up to 2025.
In June 2019, the PJSC RusHydro Audit Committee and the Board of Directors approved a new version of the RusHydro Group's Internal Control and Risk Management Policy.
The new version of the Policy takes into account the new requirements of regulatory and methodological materials in the field of internal control and risk management for state-owned companies and the best world practices and was developed in accordance with the updated version of COSO ERM, the standard (ISO 31000:2018) and the draft of GOST R ISO 31000:2018 "Risk Management – Guidelines". The document reflects changes in the structure of PJSC RusHydro and accumulated experience in the development of corporate internal control and risk management systems.