Risk management system
Responsibility for risk management and risk reporting is determined as per the linear and functional management system: an owner responsible for risk management is assigned to each risk. In every segment, as well as in all key business-processes, risk coordinators distributing and supporting the application of the corporate risks management principles are nominated among the managers. The risk analysis terms and tasks account for peculiarities and requirements of every business process at the level of which the risks are managed. Responsibility for methodological support, development and maintenance of the Risk Management System is assigned to the Office of Prospective and Organizational Development.
The listed approach allows forming risk management responsibility areas and implement risk monitoring at all levels of the Company’s management, as well as ensuring the development of target plans of response to material risks both at every subsidiary and within the Zarubezhneft Group of Companies as a whole.
The Company’s most significant risks in the area of sustainable development
|Risk group||Risk name|
|PRODUCTION SAFETY RISKS|
| Risks in the field of industrial safety are the most significant group due to the legal requirements and the presence of a large number of hazardous production facilities. |
|Risks in the area of industrial safety (including with damage to the environment, human life and health).|
|CORPORATE FRAUD AND CORRUPTION|
|Involvement of the Company or employees in corruption activities, as well as non-compliance with the legislation of the Russian Federation and countries of presence entails the imposition of legal sanctions and / or other corrective actions on the part of supervisory authorities, which will lead to significant financial losses and loss of the Company’s reputation.||Corporate fraud and corruption.|
|Zarubezhneft JSC carries out its activities in the Asia-Pacific region, Eastern Europe, as well as the Russian Federation.||Political risk.|