Risk Management
In order to prevent unforeseen losses possibly incurred in operations, Mechel Group systematically works on risk management.
A united systematic approach to risk management enables the company to expose and appraise possible risks in all operational spheres and on all management levels of the group (enterprises, divisions, Mechel PAO) in advance, and make prompt decisions on ways to react to the revealed dangers.
Brief Overview of the Integrated Risk Management System Used in the Group
The risk management system’s chief goal is to reduce internal and external factors’ impact on the group’s operations.
The risk management system is an instrument for attaining goals set by shareholders before the group.
Chief stages of risk management
1. Defining risks
2. Appraising risks
3. Defining measures to react to the risks
4. Analyzing risks
5. Planning, controlling and analyzing countermeasures
Administrating the Group’s Risk Management System
In order to ensure a common methodological approach to risk management in the Group, give methodical aid to the Group’s enterprises in dealing with risk management issues, as well as administer the united risk management process, Mechel set up the Efficiency and Risk Management Department (director T.A. Karaseva).
Purpose of Systematic Risk Management Efforts
1. Reducing losses at the Group’s enterprises and the Group as a whole incurred by risk events.
2. Efficient distribution of financial resources for key risk management.
3. Improved management abilities and responsibility for the results of enterprises’ operations.