Proactive risk management
Effective risk management is essential to the achievement of SUEK’s strategic goals. We are committed to the continuous improvement of our risk management system, which enables us to identify external and internal risks, analyse them, and develop efficient mitigation measures.
SUEK has implemented a corporate risk management system, which we continue to improve by developing new effective measures to minimise risks across the company. The company's management is fully informed of all significant risks and approves all key parameters for the risk management system. Risk management issues and processes are closely related to strategic planning and influence operational decisions.
Our Management Board controls and monitors the company’s risk management system, working closely with the Audit Committee of the Board of Directors. The risk management process is carried out in accordance with the risk management procedure developed and approved by SUEK’s Risk Management Committee. This procedure includes the main objectives and principles of risk management, and methods for identifying, assessing and mitigating the risks we face.
We monitor changes in risk levels through our established, annually reviewed risk map. This approach allows us to analyse identified risks and determine the most significant in each area of the company's operations. The responsibility for managing specific risks is delegated to the employees of relevant departments. In early 2017, the Risk Management Committee analysed the risk map for 2016, after which it reviewed and approved a new risk map for 2017.
The Risk Management Committee holds meetings at least once a quarter and considers changes within the area of controlled risks. Where appropriate, adjustments are made to the risk management action plan, and the risk management system is changed as needed. The Risk Management Committee also ensures cross-functional interaction between senior managers and internal operational experts. Employees responsible for managing certain types of risks devise appropriate responses to emerging issues, and inform the Risk Management Committee of all measures taken to mitigate the risks in question.
Moreover, in order to ensure a timely response to possible adverse developments, we continuously monitor and analyse trends in key markets and related industries, and in the macroeconomic situation, both in Russia and in countries importing SUEK’s products. Based upon this analysis, we can further adjust the company’s production, sales and financial policies.