United Chemical Company LLP recognizes importance of development of systems and procedures of risk management as a key element of corporate management aimed at timely identification, evaluation, monitoring and reduction of potential events that could adversely affect its financial stability and reputation.
Risk Management Partnership on consolidated basis is carried out by introducing Corporate risk management system (hereinafter – CRMS) at all levels of the Partnership. CRMS – a set of interrelated elements, combined into a single process, within framework of which the Partnership bodies, management and workers, each at their own level, are involved in identification of potential events that may affect the activities of the Partnership, as well as the management of these events within acceptable risk level of member.
In accordance with Risk Management Policy of the Partnership identifies the following risks:
In order to establish a risk-based management, timely response to external and internal environmental change and reduce potential losses in the realization of risks in the Partnership and its key subsidiaries and affiliates is provided by the introduction and improvement of the risk management system:
- assigned risk coordinators, responsible for risk management,
- quarterly reports formed to manage key risks,
- updated internal regulations on risk management.
Supervisory Board of the Partnership approved the consolidated register, risk map, quarterly reports on key risk management with a description and analysis of the key risks. In order to apply the risk – oriented approach by the Supervisory Board of the Partnership approved limitations (risk appetite) on the activities of the Partnership – investment, operational and financial.
In risk identification Partnership relies on world experience, industry and international benchmarks, expert evaluation, statistical data, losses occurred database, the results of the audit and other tests, etc. The identified risks are formed in register and companies risk map for their subsequent evaluation, control and monitoring. The risks included in a register and risk map is regularly (at least once a year) are reviewed to determine the relevance and the level of importance.