OREANDA-NEWS. April 23, 2008. In order to improve the corporate governance system, IC ROSNO is creating a system of internal control of compliance with the applicable legal provisions, as well as with the business principles and standards adopted by the company, reported the press-centre of ROSNO.

In international business practice, Compliance is a system intended to protect shareholders, executives and other company employees against possible unintentional violations of business norms and rules. This system guards against legal action and sanctions, helps to avoid image loss, strengthens reputation, therefore increasing the company’s value for investors.

Today, the Compliance is an integral part of everyday life in the majority of large European organizations. This system is also obligatory for all companies of the Allianz Group.

In order to make this system operative, ROSNO is establishing a division that will be responsible for detection and prevention of potential violations, as well as for mitigation of the consequences thereof. The division’s terms of reference also include prevention of potential conflicts of interest inside the company. The division’s short-term objectives include: development of an internal code of business conduct; monitoring of a latest legislative trends; provision of necessary information to company employees; creation of a special electronic portal receiving anonymous information about any actions involving possible violation of law or corporate ethics; development of measures to avoid such situations.

The important element of building the Compliance system is ROSNO’s currently implemented project "Company’s Private Ombudsman2". Its essence is in confidential engagement of a neutral and independent senior executive to assist managers and other employees in resolving conflicts at any level. Corporate ombudsman acts as a mediator both in case of resolving internal corporate disagreements and in case of settling the company’s disputes with third parties. The institute of private ombudsmen is widely known around the globe. Such worldwide brands as Samsung, Siemens, Royal Bank of Canada and many others actively use it in their everyday operations. Using this experience is a precedent for the Russian business.

The Compliance and Private Ombudsman projects are supervised in ROSNO by the company’s head of the Legal Department, Mr. Alexander Cheryarin.