OREANDA-NEWS. On 09 June 2008 OJSC FETEC announced that the Board of Directors decided to implement risk management system for all the Company activities.

Company established Risk Management Committee – a collegial body ensuring objectivity of opinions in risk management sphere, risk management control and coordination of all the involved subdivision operation.

In the processes of risk management system development the risks were revealed, which Company may face in its business transactions. “Materiality threshold” was determined as 0.5% of Company revenue for the last fiscal year, or 56 mln rubles. Risks above the said amount will be controlled by the Board of Directors. Less considerable risks will fall within the competence of Risk Committee.

Chairman of the Committee is Mr. Anton Kolpakov, OJSC FETEC Chief Executive Officer. Risk manager’s functions were imposed on Mr. Sergey Frolov, Company Chief Economics and Financial Officer.

“It is very important for us to ensure that top managers of all administration levels have proper understanding of potential threads and opportunities and proper evaluation mechanisms for the potential risks minimization. I believe that bringing the risk management system in compliance with requirements of the best world practices will improve Company competitiveness and, finally, Company capitalization”, - said Anton Kolpakov, OJSC FETEC Chief Executive Officer.

“System approach to risk management will help our management to reveal latent risk sources threatening the Company, to evaluate and mitigate their effects. Now we have got a tool for reasonable decision making on any unfavorable risks, risks mitigation and risk taking for the Company benefit. At the first stage risk management will be performed at the Board of Directors and top managers level, later on we plan to engage Company branches and subsidiaries into the system”, - noted Sergey Frolov, OJSC FETEC risk manager.