Information about the risk management system of AlES JSC
The Company is well aware of the importance of event identification and risk management as a key element of corporate governance aimed at timely identification, assessment, monitoring and minimization of potential events that may adversely affect its financial stability and goodwill.
In order to organize risk-oriented management, timely response to internal and external environment changes, as well as to reduce possible losses in case of risk realization, the Company has introduced and is improving the corporate risk management system, including appointment of risk coordinators and special committees. Risk management officers, Committee members and risk coordinators make sure that risk management procedures and methods are implemented, risk information is regularly updated, data is updated and documented, and internal regulatory documents on risk management are developed.
The Board of Directors of the Company has approved the consolidated register, risk map, quarterly reports on key risk management with description and analysis of key risks. To ensure the application of a risk-oriented approach, the Board of Directors of the Company approved the risk appetite, which is divided into three types of activities: investment, financial and operational.
The Company relies on expert judgment, statistical data, database of incurred losses, results of audits and other inspections, etc. to identify risks. Identified risks are formed in the register and map of risks of the Company for their further assessment, management and monitoring. Risks included in the register and risk map are regularly (annually) reviewed to determine their relevance and materiality level.
In accordance with the Risk Management Policy, the Company identifies the following risks: strategic, operational, financial, legal.
The events of decrease in growth rates of the economy of the Republic of Kazakhstan, weakening of the national currency exchange rate, changes in the structure of the electric power market and tariff optimization have a key impact on the conditions of the Company’s operation. At the same time, the state support and the Sole Shareholder provide an opportunity for development and increase of competitiveness in the domestic market. Thus, based on the results of the work on identification of risks of AlES JSC for 2025, 36 risks inherent in the Company’s activity were identified and assessed, threshold values of efficiency were updated, risk factors and measures to mitigate them were updated by risk owners. In addition, the Company is aware of the high significance of the problem of global warming, climate change and transition to a low-carbon economy, in this regard, in 2025 the Company has identified and added to the register of risks in the category of strategic risks climatic physical risks and climatic transition risks.