Proper risk management forms the foundation for continuous business operations and serves as a guarantee of stability and resilience. With effective risk management, a company can prevent potential financial losses, incidents at production sites, reputational impacts, stakeholder interactions, and any other potential operational damages. Recognizing this, SOE “Navoiyuran” aims not only to comply with risk management provisions but also to constantly monitor them for continuous process improvement and internal regulatory adjustments to timely adapt to changes in the environment. Risk management helps minimize the negative consequences of risk situations and creates a basis for making informed decisions based on risk analysis and potential profit. Therefore, the implementation and continuous improvement of the risk management system play a key role in ensuring sustainable development and the long-term success of the organization. The Enterprise has developed a risk and potential risk register, identifying 24 key risks and 5 potential risks, of which 3 risks are unmanageable and 21 are manageable:
The table below presents the main risks in the area of sustainable development and response measures to address them.
Risk Name | Response Measures |
Exceeding established environmental standards | Systematic monitoring of environmental standards |
Negative impact on the environment | ● Regular employee notifications on waste separation requirements ● Weekly monitoring of waste separation |
Lack of qualified specialists | ● Improving procedures for recruiting qualified employees ● Hiring according to the established procedure |
Non-compliance with occupational health and safety requirements by employees | ● Implementation and improvement of training systems ● Knowledge testing ● Three-stage control over compliance with working conditions |
Non-compliance with occupational health and safety requirements by contractors | ● Implementation and improvement of procedures for working with contractors ● Notification of contractor obligations ● Regular monitoring and control of activities |
Untimely reporting | ● Regular notifications to all relevant structural units regarding reporting deadlines |
The Enterprise pays special attention to risks in the areas of professional and environmental safety. Thus, a documented risk management procedure in these areas has been approved by the General Director’s order, which applies to all employees and external parties operating on the Enterprise’s production sites. The procedures are based on international standards ISO 9001, 14001, as well as state laws “On Environmental Protection,” “On Labor Protection,” and standards based on these regulatory acts. According to the procedure, the Company has approved detailed steps and measures for identifying and eliminating risks, as well as formulas and metrics for accurately determining risk levels and making appropriate further decisions.
Stages and activities according to the procedure:
Stage | Activities |
1. Identification of hazards, environmental aspects from the activities performed | ● Definition of the scope of application ● Identification of hazards and environmental aspects |
2. Risk and impact assessment | ● Determination of risks and impacts ● Identification of individuals exposed to risks ● Determination of control methods ● Determination of the risk and impact category |
3. Risk and impact analysis | ● Decision on risk and impact acceptability ● Determination of risk and impact priorities |
4. Risk management measures | ● Identification of measures to bring to an acceptable level ● Implementation and ongoing control ● Re-evaluation after the implementation of planned measures |
SOE “Navoiyuran” plans to implement a risk management system in accordance with the international standards COSO ERM and ISO 31000 in 2024. As part of the implementation program, the following activities are planned:
- Creation of a structural unit for risk management, reporting to the General Director.
- Development of regulations for the risk management system, risk appetite statement, and procedures for identifying, assessing, and managing risks.
- Conducting a pilot session for identifying and assessing risks at the enterprise level and presenting the corporate risk matrix to the Supervisory Board.