Effective risk management is one of the most important prerequisites for business sustainability of TVEL Fuel Company. The current risk management system is aimed at timely identification of risks, as well as the implementation of measures to manage them
Current trends in risk management assume a transition from formal description of risks to the integration of risk management mechanisms into business processes, mainly related to the adoption of strategic management decisions.
By order No. 4/253-п of June 28, 2018 the introduction of the Unified Industry Order for organizing the work of the early risk response system of the Russian Federation state program “Development of the Nuclear Energy Industrial Complex” was approved.
Risk Management of TVEL Fuel Company is based on continuous monitoring of its external and internal environment, complex analysis of threats and opportunities affecting achievement of both economic and social goals of the Company.
Main goal of the Risk Management System (RMS) is identification, assessment and minimization of threats that may affect the results of activities of the Company.
Main RMS objectives are the following:
- timely identification of risks that may affect the achievement of the goals of TVEL Fuel Company;
- support of stable financial environment of the companies of TVEL Fuel Company with due consideration of the risks;
- continuous monitoring of risks and control over implementation of the plans of arrangements aimed at reduction of likelihood of risks occurrence and minimization of the consequences of such occurrences.
In 2018, work continued on the development of risk management in TVEL Fuel Company:
- in project management - an electronic designator of project risks was approved (Order No. 4/420-П dated 09.28.2018);
- in the quality management system - the standards “Integrated Management System. Risk management in the corporate management system” (Order No. 4/225-П dated 04.06.2018) and “Integrated Management System. Hazard Identification. Risks. Evaluation and Management” (Order No. 4/144-П dated 04/04/2018)
President of TVEL JSC
Risk holders (Responsible for risks management)
Risk Officer of TVEL JSC
The Risk Management System of TVEL Fuel Company is built and optimized in accordance with the most modern world practices, principles and approaches reflected in the international standard ISO 31000:2018 (over the past few years has been developed by the International Organization for Standardization), as well as in the concept of COSO Enterprise Risk Management (it has applied significance in building the relationship between risk management and the value of the business).
Analysis of the risks affecting the achievement of target values of financial and economic activities of TVEL JSC and the, companies forming TVEL Fuel Company management system shall be carried out at the stage of development of the budget and medium-term plans, and at the stage of their control and performance forecast, as well as at the stage of making strategic management decisions, selecting the best ways to implement the key projects.
IN 2018, THE COMPANY MANAGED TO SYSTEMATIZE THE APPROACH TO INSURANCE AGAINST CERTAIN RISKS:
- The Order No. 4/493-п dated 12.12.2017 provides for such risk management method as transfer (insurance) to certain key risks of TVEL JSC and its subsidiaries;
- The Order No. 4/467-п dated 23.10.2018 provides for the property insurance program of TVEL JSC for 2018- 2019;
- The Order No. 4/190-п dated 10.05.2018 determines the size of risks self-retention and the procedure for determining the optimal level of deductibles when insuring risks of TVEL JSC and its subsidiaries.
PLANS ON FURTHER DEVELOPMENT OF THE RISK MANAGEMENT SYSTEM FOR 2019 include the development of a risk management system in terms of strategic risks, as well as the promotion of a risk-based approach in investment projects management.
RISK MANAGEMENT MECHANISMS
Trends in likelihood of risk occurrence in the reporting year
Trends in risk significance in the reporting year
Risk of NFC product/service sale volumes reduction
Price and currency risks
Risk of failure on the part of counterparties (suppliers, customers) to fulfil obligations in full and on time
Risk of increase of costs of fabrication, enrichment and conversion services
Risk of nuclear, radiation safety
Risk of environmental safety
Risk of personnel health and safety
Risk of industrial safety violation
Social and political risks