Development of the integrated risk management system

The Company is continuously expanding the methodological framework for the IRMS, including general recommendations on the quantitative risk assessment of project and business planning as well as detailed methods for assessing the most substantial inherent risks.

As of the end of 2017, the IRMS covered all major Gazprom Neft assets. Once new projects are launched or existing assets are acquired, they are included within the IRMS.

In 2018, the Company plans to continue developing regulatory and methodological documents to analyse certain substantial risks and integrate risk analysis into the decision-making process and also to expand the training programme for the Company’s executives and employees on matters concerning risk management tools and methods.


Description of the main risks

Operating
  • Risks associated with geological exploration operations
  • Licensing risks
  • Project risks
  • Risks associated with human resources
  • Risks associated with occupational and industrial safety
  • Environmental risks
  • Risk of the loss of good will (reputational risk)
  • Risks associated with information security
Market
  • Risks associated with a possible change in prices for purchased raw materials and services
  • Risks associated with a possible change in the price of oil, petroleum products, gas, and gas products
  • Risks associated with industry-wide competition
  • Risks associated with a possible change in the economic environment
Government regulation
  • Risks associated with more sanctions from the EU and the U.S.
  • Political risks
  • Risks associated with foreign assets
  • Corruption risks
  • Risks associated with changes to judicial practice on matters related to the Company’s operations
  • Risks associated with changes to the tax legislation of the Russian Federation
  • Risks associated with changes to the rules for customs control and duties
Financial
  • Credit risk of counterparties
  • Risk associated with borrowing
  • Foreign exchange risk
  • Interest risk
  • Liquidity risk
Strategic
  • Risk of failing to achieve strategic goals
Partner
  • Risks associated with attracting partners