Risk Management System

In order to manage potential risks, the Company has introduced and developed a risk-based approach to conducting business. This ensures that the management of Rostelecom takes the most effective decisions when circumstances are uncertain, and also is able to form an opinion on business opportunities for the Company.

Each year, the Board of Directors approves a Risk Management Programme. Rostelecom regularly updates its risk profiles and develops and monitors its action plans in order to reduce the occurrence of risk to an acceptable level. The Company always assesses risks associated with the development of operational business solutions and their implementation. This may be done during discussions at meetings of the Board of Directors, the BoD’s Audit Committee, the Management Board, the Internal Control Committee and during working group meetings.