Primary principles of the risk management system

The Russian Railways Group’s corporate risk management system includes four interrelated stages that are implemented based on an inverse relationship

The Regulation on Internal Audits at the Russian Railways Group, and the Regulation on the Zheldoraudit Internal Audit Centre which was approved by Russian Railways President Vladimir Yakunin, assign the latter the task and function of assessing the effectiveness of the internal control and risk management systems as well as providing Russian Railways management with reliable information about financial and business activities, the efficiency of business processes and the reliability of internal control and risk management procedures within the subdivisions of Russian Railways in a timely manner.

In accordance with the recommendations of the Corporate Governance Code approved by the Russian Central Bank’s Board of Directors on 21 March 2014 on the establishment of a separate structural division for risk management at the Company or a legal entity that performs the functions of such a division, the action plan for the introduction of the basic provisions of the Company’s Corporate Governance Code (approved at a meeting of the Russian Railways Board of Directors) envisages the establishment of a risk management project office whose main objective will be to organise the risk management system at Russian Railways.

Risk treatment measures

The optimal form of risk treatment (risk prevention, mitigating damage from risks or retaining risks) is selected based on a comparative assessment of the effectiveness of each option.

Risk map of the Russian Railways Group

External risks
Internal risks