Risk management is part and parcel of the operations of JSC NC "KazMunayGas" (KMG) and is aimed to identify, assess and monitor all material risks, and to take measures for reducing the level of the risks that may negatively impact the value and reputation of KMG, and its group of companies.
The company carries out continuous improvement of the Company’s enterprise risk management system, including actualization of the regulatory documents in the sphere of risk management for ensuring their alignment with the Company’s objectives and range of activity, new regulatory requirements, and recoding the accumulated experience and best practices in risk management.
Policy on Corporate Risk Management System of “NC “KazMunayGas” JSC and its Subsidiary and Dependent Organizations approved by Resolution of the Board of “NC “KazMunayGas” JSC dated «26» August 2014 (hereinafter - the Policy), determines the goals, objectives and basic principles of risk management and the functions of the participants of the enterprise risk management system.
The Company’s Risk Management Policy shall be based on the following principles:
The unity of the methodological framework: Corporate Risk Management System (hereinafter – CRMS) processes shall be implemented on the basis of common approaches and standards for all the structural units of the Company.
Continuity: CRMS shall operate on a continuous basis.
Integrity: CRMS shall apply to all the Company’s activities and all types of emerging risks. Control procedures function in all the Company’s business process at all levels of management.
Accountability: the organizational structure of the CRMS shall define the competence in decision-making and control in risk management at all levels of the Company’s management.
Information content and timeliness of communication: the risk management process is accompanied by fact-based, reliable and latest information.
Rationality: the Company shall rationally use the resources for the implementation of risk management activities.
Reasonable assurance: the CRMS may only provide reasonable assurance of achieving the Company’s goals, but it cannot absolutely guarantee this due to the limitations of internal environment.
Adaptability: the CRMS shall be regularly updated to ensure identification of all possible risks and the effective use of risk control and management methods.
Precise regulation: all operations shall be conducted in accordance with the order of their implementation established by the internal normative documents.
Active participation of the management: the management of KMG and SDOs shall be actively involved in and support implementation and improvement of the risk management system in KMG and SDOs.
Policy determines relationship of the risk management process with strategic planning and operational activities, budgeting and motivation
Taking into consideration KMG’s primary objectives as those of the managing entity, and consolidation of the subsidiaries’ financial performance, KMG supervises the process of introduction and improvement of the risk management system in the material subsidiaries, which includes determining common methods and procedures on risks, common risk language, common forms and order for presenting risk reporting.