The Company’s risk management strategy is aimed at ensuring strategic and operational business sustainability, which is achieved through timely risk identification, assessment and proactive management taking into account the Company’s risk appetite and providing communication and coordination of employees at various levels.
The Company’s risk management system is a set of interrelated elements combined into a single process within which the Board of Directors, executives and employees, each at their own level, are involved in the identification of potential events that may affect the Company’s operations, as well as in the control of such events within the acceptable risk level/risk appetite. The distribution of functions and responsibilities (the Board of Directors, management, employees) within the risk management system is provided in the Company’s Risk Management Policy
Risk management is an integral part of the Company’s management system and serves as a tool supporting the process of making managerial decisions and operating activities.
The risk management process is directly interconnected and integrated with strategic, production and budget planning processes, investment activities and the incentive system.
The Company’s risk management system is implemented taking into account the risk portfolios of oil and gas production departments (OGPD) and other subsidiary departments of Embamunaygas JSC and is integrated with the risk management system of EP KazMunayGas JSC.
The risk management system includes a system for monitoring the implementation of assigned tasks, the process of efficiency evaluation of ongoing activities, and a decision-making system that takes into account the risk portfolio analysis.
The objectives of the risk management system are:
• preventing the occurrence of risks that threaten the achievement of strategic and operational goals;
• reducing the impact of such risks, if they occur, to an acceptable level;
• efficient response to unexpected situations and control of such situations;
• maintaining a systematic risk management process, which is part of the overall corporate governance process and effective internal control environment.
The Company’s risk management process is constant, cyclical (continuous) and multidirectiona.
The risk management process consists of the following components:
• goal setting;
• risk Identification;
• risk assessment;
• risk control and management;