The development of the RMICS is provided by two interrelated processes:
Risk management and internal control system
The Company has a risk management and internal control system (hereinafter – the RMICS) integrated into the general management system of the Company. The purpose of the RMICS is to provide reasonable confidence in achieving the goals set for the Company and the development strategy of the Rosseti group of companies, including ensuring reliable, high-quality and affordable energy supply to consumers, as well as the operational goals of the financial and economic activities of the Company.
ensuring cost-effective operation of the Company, rational distribution and use of resources, safety of assets;
ensuring the completeness, reliability, accuracy and timeliness of the formation, communication / presentation of information and all types of reporting of the Company established by applicable law and local regulations of the Company;
ensuring compliance with the requirements of the legislation applicable to the activities of the Company, compliance with internal policies, regulations and procedures of the Company;
ensuring the safety of the environment, the safety of employees and third parties in the course of the Company’s activities;
maintaining the process of identification, analysis and assessment of risks arising at all levels of the Company’s management, effective risk management;
ensuring the development and implementation of effective control procedures to reduce the risks associated with the Company’s activities to a level not higher than the preferred risk (risk appetite);
ensuring effective prevention, detection and elimination of violations in the course of the Company’s activities and financial and business operations;
ensuring the protection of the interests of the Company, countering unfair actions of the Company’s employees and third parties;
development of a risk-oriented corporate culture in the Company;
providing an information environment for organizing effective risk management and internal control, as well as making balanced management decisions.
The Company has organized the function of internal audit – a separate structural subdivision of internal audit (the Internal Audit Department) has been created, which is functionally accountable to the Board of Directors and administratively to the sole executive body of the Company. The purpose of the internal audit is to assist the Board of Directors and executive bodies of the Company in improving the efficiency of the Company’s management, improving its financial and economic activities, including through a systematic and consistent approach to the analysis and assessment of the risk management and internal control system, corporate governance as tools to ensure reasonable assurance in achieving the goals set for the Company.
introduction and application of uniform approaches established in the Rosseti group of companies to the construction, management and coordination of the internal audit function in the Company and subsidiaries;
conducting an internal audit, participation in other verification activities in the Company and subsidiaries;
provision of independent and objective guarantees regarding the reliability and efficiency of the risk management and internal control system, corporate governance, as well as assistance to the executive bodies and employees of the Company in the development and monitoring of the implementation of procedures and measures to improve the risk management and internal control system, corporate governance of the Company;
organization of effective interaction of the Company with the external auditor of the Company, the Audit Commission of the Company, as well as with persons providing consulting services in the field of risk management, internal control and corporate governance;
preparation and submission to the Board of Directors (Audit Committee) and executive bodies of the Company (Sole Executive Body/Management Board) of reports on results of internal audit activities (including information on significant risks, shortcomings, results and efficiency of taking measures to eliminate identified deficiencies, results of implementation of the internal audit activity plan, results of assessing the actual state, reliability and efficiency of the risk management and internal control system, corporate governance).