Risk management and internal control framework

The Company’s risk management and internal control (RMIC) framework seeks to provide reasonable assurance of delivering on the Company’s goals and exercising adequate control over its financial and operating performance.

The Board of Directors is responsible for creating the Group’s risk management framework and overseeing its effectiveness.

The framework is governed by the Risk Management and Internal Control Policy of JSC INTECOApproved by the Board of Directors on 17 December 2020. and is based on three lines of defence:


First line of defence

Risk management and internal control over business processes (at the level of INTECO’s business units).


Second line of defence

Development of a unified policy and coordination of risk management and internal control activities (by the Internal Control Department).


Third line of defence

Internal assessment of the framework’s performance (by the Internal Audit Office).

Distribution of the key responsibilities among the parties involved

Board of Directors approves the Company’s Risk Management and Internal Control Policy, approves and reviews its risk appetite, considers reports of the Internal Audit Office.

President ensures effective operation of the framework, approves local regulations and limits on risks of development projects, considers information on significant risks and their management.

Vice Presidents in charge of relevant divisions are responsible for specific areas of internal control and foster a common corporate risk management culture.

Internal Audit Office tests and assesses the framework’s performance.

Internal Control Department develops methodological approaches to risk management and internal control, updates regulations, and coordinates risk management and internal control activities.

Business units ensure the operation of the framework within the scope of their functions.

Employees perform the framework’s control procedures within their competence.

The framework’s performance is assessed by the Internal Audit Office.