Risk management system GRI 102–15, 102–30, 102–31
Risk management and internal control system
As part of its corporate governance, Russian Railways strives to manage risks more responsibly and efficiently, continuously streamlining risk management processes and integrating them not only into its operations but also into project activities and strategic planning, improving the effectiveness of identification and assessment of risks and their triggers, as well as enhancing their timely treatment through the review and refinement of business processes with account of the growing influence of external factors.
The Company has in place a risk management and internal control system ("RMICS”) which ensures sustainable development, a more efficient use of internal resources, successfully responds to external challenges, supports revenue growth and helps save resources by fostering a risk-oriented culture.
Risk management process
The overall coordination and methodological support of RMICS risk management process are led by the Risk Management and Internal Control Centre, whose performance in 2021 was disclosed in Russian Railways’ Annual Report.
Risk management process is governed by internal regulatory documents of the Company. The RMICS process generates risk reports, which are reviewed and approved by the executive bodies, the Audit and Risk Committee, and the Board of Directors of Russian Railways. The reports include information about the risks, risk mitigation measures, and RMICS performance. The Board sets the risk appetite for, among other things, sustainable development areas such as procurement from small and medium-sized businesses, health, environmental, industrial and fire safety, traffic safety, IT security, anti-corruption measures, finance, and social policy.
Information exchange, consultations, vertical and horizontal interaction of participants are not limited by reporting periods due to continuous risk management and internal control.
Participants of the Russian Railways’ risk management and internal control system
Sustainability risks
Russian Railways pays particular attention to sustainability risks. Sustainable development of the Company is underpinned by its economic, environmental and social performance as one of Russia’s major economic entities.
The Company analyses international sustainability trends, reviews and improves its activity with due account of ESG principles, which makes it possible to identify growth drivers and leverage sustainability potential, balancing the opportunities and respective risks.
Information on sustainability risk management is available in respective sections of the Report: