Risk Management

Both production and non-production risks have an impact on JSC Shaimerden’s operations as well as those of its affiliates and subsidiaries. JSC Shaimerden understands the significance of risk management as one of the essential elements of the corporate governance system that aims to promptly identify, evaluate, and take action to lower the level of risks that could jeopardize the value and reputation of the company as well as the accomplishment of its strategic and operational goals.

JSC Shaimerden risk management is to give a reasonable level of assurance over the long-term viability of the company’s operations and strategy. In 2021, the JSC Shaimerden implemented a risk management program. Samruk-Kazyna National Welfare is implementing the benchmark risk management model.

Measures were done to improve the IPS and BPS indicators in accordance with the findings of a survey that was conducted in March 2020 by JSC Shaimerden and Intergas Central Asia to guarantee the continuity of the internal control system and company. The JSC Shaimerden uses an automated risk management system to identify and evaluate its risks. The person in charge of risk management at JSC Shaimerden and lower-level groups reports to the company’s first executive. JSC Shaimerden and its subsidiary companies participated in a special risk management interview between August 2 and October 1, 2019:

• Risks have been highlighted that could impact the JSC Shaimerden of firms’ ability to fulfill their objectives;
• The possible damage during the risk’s implementation is calculated; A risk register was created in JSC Shaimerden and affiliated entities in response to the 2020 coronavirus pandemic.

The Register of Risks of JSC Shaimerden and its DSO was updated in 2020 in response to the coronavirus pandemic. JSC Shaimerden and its subsidiary organizations’ risk management action plan recognized “natural impacts and cataclysms” (Covid-19) as a risk factor and evaluated the effect on the companies’ operations. The risks listed below significantly affect the operations of JSC Shaimerden and its affiliated companies.

Risk of non-fulfillment of obligations regarding gas supply under the gas purchase and sale agreement (export)

• increased consumption in the domestic market;
• refusal to accept gas from the buyer;
• non-fulfillment of obligations on the part of the supplier.

Risks associated with the implementation of the integrated gas strategy

• lack of resources, due to an increase in gas consumption, taking into account the introduction of gas chemical projects in the domestic market and a decrease in gas production;
• high cost of purchasing imported gas.

The documented system of measures and actions to ensure effective internal control over the accomplishment of the company’s goals, objectives, and plans, the identification and execution of non-standard operations, and the prevention, limitation, and prevention of risks and potential illegal actions by officials and employees of the company are the internal control procedures that the company’s bodies and employees must follow. The Risk Committee’s work is continuous; at meetings of the Risk Committees of JSC Shaimerden and its subsidiaries, all noteworthy occurrences that could adversely impact the attainment of the company’s objectives are reviewed collectively. This includes risk reports for the fourth quarter of 2019 and the 1.2 and 3 quarters of 2020.