United Chemical Company LLP (hereinafter – the Partnership) acknowledges the importance of developing a risk management system and procedures as a key element of corporate governance aimed at timely identification, assessment, monitoring and reduction of potential events that may negatively affect its financial stability and reputation.
Risk management is carried out on a consolidated basis by introducing the Corporate Risk Management System (hereinafter – CRMS) at all levels of the Partnership. CRMS is a set of interrelated elements combined into a single process in which the Partnership’s bodies, management and employees, each at their own level, participate in identifying potential events that may affect the activities of the Partnership, as well as in managing these events within the risk level acceptable for the participant.
In order to organize risk-oriented management, timely response to changes in the external and internal environment, as well as to reduce possible losses in the implementation of risks in the Partnership and its key subsidiaries and dependent organizations, the introduction and improvement of the risk management system is ensured: risk coordinators responsible for risk management are appointed, reports on key risk management are generated quarterly, internal regulatory documents on risk management are updated.
The Supervisory Board of the Partnership approved a consolidated risk register and risk map, quarterly reports on key risk management with a description and analysis of key risks. In order to apply a risk–based approach, the Supervisory Board of the Partnership approved restrictions (risk appetite) on the types of activities of the Partnership.
The risks of the Partnership are identified on the basis of international experience, sectorial and international benchmarks, taking into account expert assessment, statistical data, database of losses occurred, results of audit and other inspections, etc. The identified risks are formed in the register and risk map of the Partnership for their subsequent assessment, management and monitoring. To determine the relevance and level of materiality, the Partnership regularly reviews the risks included in the risk register and risk map.