JSC Atomenergoprom Annual Report slide image

JSC Atomenergoprom Annual Report

JSC ATOMENERGOPROM / ANNUAL REPORT / 106 GOVERNANCE SYSTEM Results in 2022: - - - The URAN (Risk Management: Analytics) Industry-Wide Risk Management System (URAN IRMS), an information system developed as part of project B-RM1-1 to build an Industry-Wide Risk Management System in ROSATOM, became fully operational; A list of key risk indicators was compiled, including a description, the calculation algorithm and frequency, sources of information and thresholds (baseline, warning and response thresholds); A system for early response to risks related to national and federal projects was in place; Key risks that JSC Atomenergoprom is exposed to and that affect the Company's key financial and economic indicators were identified and assessed; Workshops, risk sessions and conferences were held to enable risk officers and employees within the hierarchy of the Risk Management function to share their experience; this included holding a roundtable discussion titled 'Risks and Opportunities: Responding to Challenges of the Global Economy' as part of the 12th ATOMEXPO 2022 International Forum. Risk management process at JSC Atomenergoprom RMS processes Organisational model of ROSATOM's risk management system applied in the Company Director General and Strategic Council Risk Committee Risk owners at the Corporation and Division levels Risk Management Department/ Risk Officers in Divisions Strategic level Aligning risk management with the Company's business strategy Tactical level Organisation of effective RMS functioning in accordance with the Company's strategy and established risk appetite Operational level Risk identification and assessment; development and implementation of risk management measures Organisational and methodological support of RMS processes at the Company and Division levels RMS methodology management Methodological support of RMS processes and individual risk management 1 Risk Risk identification Proactive risk identification at all management levels, appointment of risk owners assessment Qualitative and quantitative assessment of the impact on the Company's objectives within different time frames 2 3 4 Risk management Planning of risk management measures, Risk monitoring Monitoring compliance with the risk appetite level assessment of their effectiveness RMS process effectiveness monitoring Internal and external monitoring of RMS effectiveness Reporting on risks in the planning process STRATEGIC MANAGEMENT BUDGET PLANNING BUSINESS PLANNING INVESTMENT PLANNING Specialised internal control bodies (independent assessment of RMS performance) Key business risks50 As part of the functioning of the RMS, a list of critical risks was compiled; risk owners were appointed; risks were assessed, and risk management measures were developed and implemented. Low level 12 High level 11 Critical level High level 10 1 13 2 7 Low level 9 8 2022 risk assessment 2023 risk assessment 3 5 st 4 1. Currency risk 2. Interest rate risk 3. Credit risk 4. Liquidity risk 5. NFC product and service market risk 6. Electricity and capacity market risk 7. Risk of a decrease in power generation 8. Health, safety and environmental risks 9. Risk of loss of and damage to assets 10. Reputational risk 11. Project risks 12. Climate risk (including environmental risk) 13. Social and political risks Comprehensive risk management measures largely offset the negative impact of external factors on the implementation of JSC Atomenergoprom's strategy. 50. The annual report does not contain an exhaustive description of all risks that may affect the Company's operations; it only provides information on key risks. GOVERNANCE SYSTEM JSC ATOMENERGOPROM / ANNUAL REPORT / 107
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