JSC Atomenergoprom Annual Report
JSC ATOMENERGOPROM / ANNUAL REPORT / 108
Risk management outcomes in 2022
Change in estimated risk levels for 2023:
increase
decrease
The Company's strategic goals:
no significant changes
1
To increase the international
market share
3
To develop new products for the Russian
and international markets
2
To reduce production costs and the lead
time
4
To achieve global leadership in state-of-
the-art technology
Sustainability risks are presented in the table (see health, safety and environmental risks, climate and
environmental risks, the risk of loss of and damage to assets, social and political risks in the regions of operation).
Risks and changes
in risk levels
Risk
description
Risk management practices
(risk owners)
Financial risks
1. Currency risk
Adverse
changes in
exchange
rates
(Executives of the
Company's Divisions)
GOVERNANCE SYSTEM
Management approaches:
Connec-
tion with
strategic
goals
-
- Applying currency clauses in commercial contracts and locking in
exchange rates (where possible);
1
- Switching to settlements with counterparties in the currencies of
friendly jurisdictions;
2
Examining the possibility of switching to settlements with counter-
parties through banks in friendly jurisdictions;
3
-
Using long-term pricing mechanisms with counterparties;
Exploring opportunities for engaging Russian suppliers and con-
tractors in order to reduce the foreign exchange position;
Continuously monitoring exchange rates to enable prompt deci-
sion-making to mitigate currency risk;
Setting the highest possible conversion rates when negotiating the
terms of expense contracts;
Monitoring the terms of foreign currency payments under revenue
contracts and expense contracts concluded as part of performance
of revenue contracts;
- Maintaining a balance of claims and liabilities denominated in
foreign currencies (natural hedging).
Results:
An optimal ratio of assets and liabilities denominated in the same
currency was maintained in the reporting year. Foreign currency
liabilities were met without raising additional funds to compensate
for exchange rate fluctuations. In 2022, the Company recorded
foreign exchange gains on currency conversion transactions.
Connec-
Risks and changes
in risk levels
(risk owners)
2. Interest rate risk
(ROSATOM's Treasury
Department)
Risk
description
Adverse
changes
in interest
rates, differ-
ent timing
of interest
income and
interest
expenses
tion with
Risk management practices
strategic
goals
Management approaches:
Maintaining a balance of interest income and interest expenses in
terms of timing and amounts;
1
Reasonable selection of interest rates (fixed or floating) for the
expected maturity period. All things being equal, the Company
prefers long-term fixed-rate loans with the option of penal-
ty-free early repayment;
2
Floating-rate loans on which interest rates may be increased are
refinanced using the intra-group liquidity pool.
3
Results:
The Company maintains a stable long-term loan portfolio.
There was no significant increase in the risk level in 2022 due to the
effective use of the risk management approaches described above.
3. Credit risk
Failure by
counter-
For details, see section 7.3 'Financial Management'.
Management approaches:
Setting and monitoring limits for counterparty banks;
--
parties to
1
fulfil their
(ROSATOM's Treasury
Department for
banks; executives of
the Company's or-
ganisations for other
counterparties)
obligations
in full and on
time
- An internal counterparty solvency rating system.
Results:
Using suretyship, guarantees, restrictions on advance payments in
favour of external counterparties;
Monitoring the status of accounts receivable and the financial
position of counterparties;
2
4.Liquidity risk
(ROSATOM's Treasury
Department / Heads
of Divisions)
Lack of
funds for the
fulfilment of
obligations
by the Com-
pany and its
organisations
Losses through the fault of counterparties were minimised.
Management approaches:
- Centralised cash management (cash pooling);
1
Rolling liquidity forecasts and cash flow budget;
Maintaining required amounts of open lines of credit with banks
(funds committed by banks);
3
Reducing the period of keeping spare cash on bank deposits when
this is advisable from an economic perspective;
- Discussing matters related to state support with Russian federal
executive authorities;
Active use of project financing instruments as part of implementation of
projects and programmes by the Company and its organisations;
Maintaining the credit rating assigned to the Company by the
national rating agency, JSC Expert RA.
Results:
The Company maintained sufficient liquidity to repay liabilities on
time, preventing unacceptable losses and reputational risk.
For details, see section 7.3 'Financial Management'.
GOVERNANCE SYSTEM
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