Investor Presentaiton
Risk
management
The Company devotes significant resources to identifying, assessing and accounting
of risks in business decisions making.
To reach stable and sustainable business
development, achieve strategic goals and ensure
the safety of the Company's assets, the Company
puts specific focus on establishing an efficient risk
management system, which main elements involve:
identification and assessment of risks, development
and implementation of measures to eliminate risks,
risk management reporting and evaluating the risk
management system efficiency.
The risk management system has always been one
of the key priorities of the Company's management,
however, it has become even more important due
to the increased level of uncertainty and instability
in world markets.
their sufficiency and performance, monitors
the Company's management compliance with policies
and procedures in risk management activities. It further
assesses how the risk management system corresponds
to the risks faced by the Company.
In the reporting period, the Audit Committee
of the Board of Directors has twice reviewed
the risk management system in place in the Company.
The efficiency of the system was considered satisfactory
by the Audit Committee. In order to further improve
the system, appropriate recommendations were given
to management.
Pathogenic risks, epizootic outbreaks
Risk description
Pathogenic risks, epizootic outbreaks
Biological risks
Risk mitigation
Complying with generally recommended volumes of cultivation;
locating areas at a sufficient distance from one another;
concentrating big biomass volumes in large depth areas
• Conducting regular internal and external veterinary inspections
of the farms
• Stocking volumes and densities are justified by research institutions
• Neighbouring farms have fish from the same generation
Farm resting after killing each generation of the fish
• Insuring fish
Risk management
The Audit Committee of the Board of Directors reviews
the Company's risk management and internal control
systems on a regular basis, analyses and evaluates
Operational risks
The Company identifies nine main types
of risks that have the greatest impact on its
performance.
•
Risk description
Risk of disease transmission from wildlife fish
Risk of intrusion of foreign pathogenic organisms
Risk of genetic modifications in fish populations naturally
inhabiting the water due to aquaculture salmon leaking out
of cages
Risk mitigation
Performing ongoing production control
• Analysing standard indicators of water quality and the amount
of natural waste
• Installing an innovative purification system
Using special protection nets and anti-seal ultrasound repelling
devices
Risk description
Poor planning
Poor design
Risk of failure to reach the target capacity and low production
efficiency
Risk of predation
Risk of potential spoilage or failure of main equipment that may
significantly affect the production process
Risk mitigation
• Analysing and considering past experience when planning
• Working out alternatives during the planning stage
.
Carefully considering all possible project options; identifying both
the upsides and downsides
• Allowing for project adjustment
.
Training of personnel at the cage farms in Norway
Focusing on process optimisation using the best practices
Procedures and regulations for core production processes
• Bidding procedures for all major purchases
• Planning the scope of production with regard to all factors that
influence the result; timely revising plans; informing customers
on changes in production volumes.
Installing anti-seal equipment
• Only trained staff members can have work permit
• Insuring equipment; purchasing equipment with long-term warranty
periods only
• The availability of a spare parts kit, especially of components of bearing
structures and fasteners, is mandatory
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PJSC Russian Aquaculture | Annual Report 2021
Environmental risks
Risk description
•
Risk of abnormal weather phenomena in winter or summer
Risk of change in oceanic currents
Risk mitigation
Risk occurrence is very low. The existing changes in climatic conditions
and oceanic currents present no threat. In case of significant changes
in water temperature and routes of undercurrents, the existence
of not only the Company's farm, but of the whole fishery industry
of the region will be unlikely
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