Risk management and internal control
KTZ NC JSC awares the importance of risk management as a key component of the corporate governance system of KTZ NC JSC and its subsidiaries, aimed at timely identification and taking measures to reduce the level of risks that may adversely affect its value and reputation.
The improvement of the corporate risk management system of KTZ NC JSC is carried out as part of the implementation of the recommendations of the National Welfare Fund Samruk-Kazyna Joint Stock Company, in accordance with which the implementation of the corporate risk management system is carried out in accordance with the COSO model Corporate Risk Management-Integrated Model.
KTZ NC JSC has a structural unit, which is responsible for risk management and internal control, which organizes the operation of the risk management system, ensures the development and updating the methodology in the field of risk management and internal control, provides methodological support to other structural units in terms of identification and risk assessment, and provides recommendations.
The internal control system of KTZ NC JSC is an integral part of the corporate governance system, covers all management levels, internal processes and operations of KTZ NC JSC. The structural unit is responsible for risk management and internal control evaluates the design of internal controls of business processes.
The activities of the Management Board and the Board of Directors of KTZ NC JSC are aimed at further improvement of the corporate risk management system of KTZ NC JSC.
The results of risk identification and assessment are provided to the Management Board and the Board of Directors of KTZ NC JSC, as well as relevant committees, in the form of a risk report, which includes information on key risks, key risk indicators, action plans for managing key risks of KTZ NC JSC ".
The implementation of risk management and internal control elements into the existing business processes, as well as the improvement of risk management culture is the priority for the KTZ NC JSC.
KTZ NC JSC may be exposed by the following key risks that may adversely affect its operations and the achievement of strategic goals:
Decrease in the level of cargo transportation and passenger turnover due to the instability of the economic situation, market volatility, changes in oil prices and other negative factors.
The deterioration of economic conditions may lead to a decrease in the volume of services provided by the carriage of goods and passengers by rail, labor productivity, increase in the cost of goods and services, and, also, adversely affect the performance of planned indicators.
KTZ NC JSC takes measures to improve the efficiency of its activities, increase the transit traffic, as well as to implement anti-crisis measures (additional cost reduction).