System of internal control and risk management

RusHydro’s operations are subject to a number of risks that, in certain circumstances, may have an adverse impact on the Company’s operating and financial performance and its social and environmental footprint. The Company has a risk management system in place to mitigate negative effects of potential threats while capturing favorable opportunities in line with the Development Strategy of RusHydro Group until 2020 with an outlook for 2025.

Control and Risk Management Organizational Chart

The Company’s risk management processes are coordinated by the Control and Risk Management Department set up as part of the internal control and risk management unit. Its headcount as at 31 December 31, 2018 was 26 employees.

The Control and Risk Management Department is responsible for:

  • maintaining an effective internal control and risk management framework at Rushydro Group,
  • coordinating risk identification, assessment and management at RusHydro Group,
  • carrying out centralized day-to-day control over RusHydro Group’s operations, including assessment of the management’s performance in relation to internal control function;
  • maintaining an effective anti-corruption framework and coordinating RusHydro Group’s anti‑corruption activities.

Internal regulations

The key regulation defining the goals, objectives and principles of the Company’s corporate system of internal control and risk management is RusHydro’s Internal Control and Risk Management Policy.