Aims and objectives of the risk management and internal control framework (ERMIC)
The ERMIC is essential aspect of the concept of corporate governance that make it possible to detect and assess risks, develop and conduct risk management actions, including control procedures.
Objectives of ERMIC:
- To assure the Board of Directors and executive bodies that strategic and operational targets will be achieved;
- To ensure the efficiency of financial and economic activities, as well as the use of resources;
- To ensure the integrity of assets;
- To monitor compliance with legislation and internal policies and procedures;
- To ensure reporting is carried out fully and in a reliable manner.
Aims, main principles and uniform approaches to organizing risk management and internal control in Inter RAO Group are set out in Risk Management and Internal Control Policy of PJSC «Inter RAO»
Internal policies and procedures
PJSC Inter RAO has a multi-level base of internal guidelines for ERMIC including:
- Risk Management and Internal Control Policy of PJSC «Inter RAO» approved by the Company's Board of Directors and specifying core principles and approaches to ERMIC organization;
- Regulations establishing the procedure for functional interaction between ERMIC subjects, schedule and results of work within the framework of the annual ERMIC cycle;
- Procedures regulating the contents and methods of individual risk management and internal control processes;
- Internal guidelines of functional areas describing risk management and internal control procedures within them.
The Group adheres to the methodological consistency principle: risk management and internal control are based on consistent approaches and methodological standards specified for the Company and its controlled entities. Internal guidelines for ERMIC are developed in PJSC Inter RAO and recommended to be used by its controlled entities (after adaptation and approval by their management bodies).
In order to adapt ERMIC to changing external and internal conditions and development of the ERMIC methodology, the internal guidelines for ERMIC are regularly revised and updated.