Information about the risk management system of AlES JSC
The Company recognizes the importance of developing a risk management system and procedures as a key element of corporate governance aimed at timely identification, assessment, monitoring and mitigation of potential events that may negatively affect its financial stability and reputation.
In order to organize risk-oriented management, timely response to changes in the external and internal environment, as well as reduce possible losses when risks materialize, the Company ensures the implementation and improvement of the corporate risk management system: risk coordinators of structural divisions responsible for risk management have been appointed, The Risk Committee for preliminary consideration and approval of issues related to risk management, reports on key risk management are generated quarterly, and internal regulatory documents on risk management are updated.
The Company’s Board of Directors approved a consolidated register, a risk map, and quarterly reports on key risk management with a description and analysis of key risks. In order to apply a risk-oriented approach, the Board of Directors of the Company approved restrictions (risk appetite) on the types of activities of the Company – investment, operational and financial.
When identifying risks, the Company relies on expert assessment, statistical data, a database of losses that have occurred, results of audits and other checks, etc. Identified risks are formed into a register and risk map of the Company for their subsequent assessment, management and monitoring. Risks included in the register and risk map are regularly (annually) reviewed to determine relevance and level of materiality.
In accordance with the Risk Management Policy, the Company identifies the following risks: strategic, operational, financial, legal.
Cases of a decrease in the growth rate of the economy of the Republic of Kazakhstan, a weakening of the national currency, changes in the structure of the electricity market and tariff optimization have a key impact on the operating conditions of the Company. At the same time, the presence of support from the state and the Sole Shareholder provides an opportunity for development and increased competitiveness in the domestic market. Thus, based on the results of the work carried out to identify the risks of AlES JSC for 2024, 36 risks inherent in the Company’s activities were identified and assessed, the threshold values of efficiency were updated, the risk owners updated risk factors and measures to reduce them.