Risk matrix model

In 2018, a total of 121 risks were identified by FPC:

  • 5 intolerable risks
  • 27 undesirable risks
  • 13 tolerable risks
  • 76 negligible risks
  • 32 intolerable and undesirable risks are characterised by high severity of consequences and/or likelihood and the highest impact on FPC’s target state; these are identified as the Company’s key risks.

FPC’s risk map is based on the risk level as shown in the risk matrix, which has severity of consequences in the x direction and risk likelihood in the y direction.

Internal control system

FPC’s internal control is based on the Company’s Internal Control Policy as approved by its Board of Directors (Minutes No. 9 dated 23 December 2015) and other corporate regulations.

The primary objectives of FPC’s internal control system:

  • assuring the efficiency and performance of financial and business operations
  • safeguarding the assets and ensuring the cost-effective use of resources
  • risk identification and management
  • ensuring the reliability and completeness of accounting (financial) statements and other types of reporting
  • ensuring compliance with laws and regulations of the Russian Federation as well as FPC’s corporate regulations.

The set-up and operation of FPC’s internal control system are based on the following components:

  • control environment
  • risk assessment
  • internal control procedures
  • information and communication
  • monitoring.

The following requirements apply to FPC’s internal control system and are essential for its effective operation:

  • integration
  • comprehensiveness
  • continuity
  • timely information sharing
  • accountability
  • focus on risks
  • delineation of responsibilities
  • agility.