Integrated Annual Report 2015

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Risk management

Risk management covers every level of the management structure in the GAZ-SYSTEM Group. Depending on the area, specific management approaches are applied in order to identify, assess and control the potential risks. The include, among other things:

Since 2007, all the sources of information regarding relevant risks are integrated within the Enterprise Risk Management (ERM) process.

The purpose of the ERM process is to monitor the changes in the external and internal environment, identify, assess and prioritize the risks, as well as to coordinate risk management activities, including those that are critically important for long-term operation of the company. Risk management is an ongoing process that is continuously adjusted in response to the changing external and internal environment of the company.

In 2016, the implementation of an IT system for corporate risk management is planned. The programme, together with the Central Register of External Audits and the Central Register of Audit Recommendations will constitute a functional platform which will facilitate the identification, categorisation and optimisation of all types of risks.

In 2015, major price decline was observed on the global fuels market, including prices of oil, coal and gas. This is a factor which may influence the quantity and mix of energy consumption and, in consequence, bring about changes in the volume and directions of gas transmission. However, thanks to the completed cross-border interconnections and the launch of the LNG Terminal, the security of gas supply to domestic customers has been ensured. As an additional advantage, GAZ-SYSTEM strengthened its role as a major regional operator. With the implementation of development plans in the coming years, the role of the organisation in the pan-European gas system is expected to increase even further.