Control over financial and economic activities
MANAGEMENT SYSTEM
MMK has a risk management and internal control system in place to provide reasonable assurance of achieving current (annual) and strategic goals. The risk management and internal control system ensures:
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Objective and clear understanding of the Company's current state and prospects
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Integrity and transparency of its reporting, reasonableness and acceptability of the risks it takes
AUDITOR
Activities
- Providing an objective assessment of accounting and reporting
- Audit of financial and consolidated financial statements for the reporting year
- Review of quarterly reports
- Determining the level of performance efficiency
The independent auditor shall be selected from among the independent auditors that comply with the following criteria
- High professional qualification of the audit company
- High quality of rendered services
- Strict adherence to the requirements set for auditor independenceс
INTERNAL AUDIT
To analyze the reliability and efficiency of the comprehensive risk management and internal control system, the Company conducts internal audits.
Internal audit is organized and conducted by the Company's Internal Audit Department. The head of structural subdivision performing internal audit functions is appointed and dismissed by the sole executive body of PJSC MMK upon the decision of the Board of Directors.
The independence of the Internal Audit Department is ensured by a clear system of accountability to the Audit Committee of the Board of Directors and the General Director of PJSC MMK.
Principles
In its activities, the Internal Audit Department is guided by international professional standards, the Code of Ethics for Internal Auditors and local regulations of PJSC MMK on internal audit.
Key tasks
- Evaluating the efficiency of organization and functioning of the internal control system
- Recommendations on elimination of identified deficiencies, control over their implementation, advice to MMK's management on internal control system operation
RISK MANAGEMENT AND INTERNAL CONTROL SYSTEM
PJSC MMK and PJSC MMK Group's internal control system provides reasonable assurance in achieving operational goals, including asset security, reporting and compliance by reducing risks to an acceptable level and supporting the reliability of decision-making and management processes at PJSC MMK and PJSC MMK Group companies.
MMK was one of the first Russian steel companies to implement a comprehensive risk management system that meets international standards and risk management best practices. Independent assessments of the system have repeatedly confirmed its effectiveness, and recommendations for further development have been implemented.
Risk management is integrated into all of MMK's business processes: risk identification, analysis and management is carried out at all levels of the Company and is integrated into management, investment and operational decision-making processes.
Key tasks
- Providing reasonable assurance of achieving the goals of PJSC MMK and PJSC MMK Group companies, namely operational goals, reporting goals (both internal and external) and compliance goals (compliance with the requirements of laws and regulations governing the activities)
- Ensuring the efficiency of financial and economic activities and economic use of resources
- Identification and management of risks
- Ensuring the safety of the Company's assets by managing risks
- Ensuring the completeness and accuracy of accounting (financial), statistical, management and other reports
- Control of compliance with the legislation and internal policies and regulations of the Companies.
- Contributing to the achievement of the Company's goals