The Enterprise risk management system (ERMS) is the key component of the corporate governance arrangements, aimed to identify, assess, monitor and mitigate in a timely manner potential risk events that may adversely impact the achievement of the strategic and operating goals of JSC NC "KazMunayGas" and its subsidiary and dependent entities.
KMG has the Enterprise Risk Management System Policy approved, which describes the development areas and intents, risk management principles, the need for the implementation and functioning of a vertical process of industrial and non-industrial risk management, starting from the top level and down to the line level (an industrial structural unit of an SDE).
KMG has also developed the mechanisms of implementing the Company's ERMS Policy:
- Model Rules of Organizing the Process of Management of Instustrial and Non-industrial risks in the Company;
- Methodology for Identification and Assessment of Risks, Selection of the Method of Managing the Company's Risks;
- Rules of Amending the Unified Risk Classifier of the Company.
KMG's Board of Directors approves the Company's overall risk appetite, corporate risk Registrar and map on an annual basis. KMG Risk Management Department continuously monitors the dynamics of the key risks and implementation of the actions to mitigate them.
The Company pays a great deal of attention to the development of the risk culture through the involvement of all structural subdivisions of KMG and the SDEs in the risk management process, and on account of regular information exchange between KMG's Board of Directors, Management Board, Risk Committee and the Company's employees. Training sessions in risk management are held for the employees of KMG and its SDEs.
KMG provides for work on further improvement of the Company's ERMS as it pertains to the development and implementation of the internal control system (process level risk management), and the business continuity management system (management of risks leading to business interruption).