The Risk Management System
JSC”Kazgeologiya” realizing the importance of risk management as a key component of corporate governance is trying to implement a risk management system of JSC “Kazgeologiya” providing the strategic and operational goals of JSC “Kazgeologiya” and prevention of cost reduction and losses of JSC “Kazgeologiya”.
The purpose of the risk management process of JSC “Kazgeologiya” is to achieve a balance between the maximum use of opportunities in order to obtain benefits and loss prevention.
Implementation of the risk management system of JSC “Kazgeologiya” implies the establishment and development of the necessary infrastructure and culture and also covers the use of logical and systematic methods to identify, analyze and assess, monitor, control and manage the risks inherent in all activities, functions or processes of JSC “Kazgeologiya” in order to prevent losses and maximize benefits.
The main part of the process of risk management of JSC “Kazgeologiya” is its integration with the specifics of the organization, the basic principles of the activity, business processes and the involvement of every employee in risk management process.
The Board of Directors of “Kazgeologiya” approved the risk Management Policy of JSC «Kazgeologiya» (hereinafter - the Policy) in May 30, 2012 (Minutes № 5/12).
The basic principles of risk management of JSC “Kazgeologiya” are:
- integrity - consideration of the elements of the overall risk of the Company in the context of risk management;
- transparency - a ban on the consideration of the risk management system as a stand-alone or an isolated one;
structuring - a complex system of risk management has a clear structure;
awareness - risk management is accompanied by the availability of objective, reliable and relevant information;
continuity - the process of risk management is carried out on an ongoing basis;
cycling - the process of risk management is a constantly recurring cycle formed of its main components.
According to the Risk Management Policy of JSC “Kazgeologiya” the risk management is a constant, dynamic and continuous process represented in the Concept and consists of the components according to the following scheme:
the Board of JSC “Kazgeologiya” provides quarterly reports on risk management in JSC “Kazgeologiya” for review and approval by the Board of Directors JSC “Kazgeologiya”.
In carrying out its activities within the framework of the Policy JSC “Kazgeologiya” takes into account the interests and the consequences of the risks to the sole shareholder of JSC “Kazgeologiya”and other stakeholders.
In order to improve the effectiveness of the risk management system it provides the Internal Audit Service of JSC “Kazgeologiya” to annually assess the effectiveness of the risk management system of JSC “Kazgeologiya” including the ongoing activities to minimize the critical risks.