Corporate risk management

Corporate risk management policy of KEGOC JSC
Risk Management system guidelines

In 2007 KEGOC successfully implemented and since then has been operating the risk management system compliant with generally accepted conceptual models of risk management developed by the Committee of Sponsoring Organizations of the Treadway Commission - COSO ERM ‘Risk Management. Integrated Model’ and requirements of Samruk-Kazyna.

The corporate risk management system is a key component of the corporate governance system that timely identifies risks, evaluates them and develops risk management measures that can adversely affect the achievement of strategic and operational objectives of KEGOC.

The objective of the current corporate risk management system (CRMS) is to ensure continuity and stability of operations by mitigating the exposure to internal and external adverse impact on KEGOC’s activity.

The main principles of the risk management system are:

• engagement of KEGOC’s executives in risk management;

• continuous improvement of the risk management system;

• continuous learning and knowledge sharing by the Company employees on risk management;

• transparency and integrity in submitting reports and risk escalation.

The risk management involves the Board of Directors, the Management Board, the Internal Audit Services, structural subdivisions (risk owners) and the structural subdivision responsible for risk management.

To enhance the knowledge of its employees, KEGOC provides training on risk management and internal control principles and approaches. The company sends training materials to employees and provides instruction to newly hired staff to familiarize them with the current risk management system.

In line with the Guidelines for the risk management system, KEGOC conducts annual testing to evaluate employees' knowledge of risk management and internal control systems. Employees who do not pass the test receive training on the fundamentals of risk management and internal control systems.

As feedback plays a crucial role in enhancing the risk culture, KEGOC conducts an annual survey of its employees to evaluate the level of risk management culture. The results of the survey are utilized to make improvements in the risk management system in the future.