Risk Management
OJSC Mostotrest’s risk management policy ensures the timely detection of possible risks and focuses on risk reduction or mitigation to prevent or mitigate financial, material or business reputation losses.
Primary areas of focus for the risk management function of the Company:
- Develop corporate culture of risk management
- Formation of sufficient and reliable information and analytical base for decision making
- Implementation of Project Management standards (EPCM) based on the international project management standards developed by the Project Management Institute (PMI), a leading worldwide project management association
- Planning of risk management, identification, analysis and evaluation of risks
- Investment activity risk management
- Provision of insurance for contractor works
- Permanent monitoring of competitors, their management approaches and competitive activity
- Risk forwarding to subcontractors (receipt of ‘mirror’ counter-guarantees from them)
- Enhancement of internal budgeting system
- Centralised purchasing system
Mostotrest uses an integrated IT system comprising software supplied by major Russian and foreign vendors. Different segments of Mostotrest’s IT system are designed for management of Mostotrest’s branches and subsidiaries and supervision of their financial reporting, developing its business and financial models, and monitoring its operating costs. For these purposes Mostotrest has recently integrated SAP BusinesObjects system which enables the Company to consolidate huge amounts of analytics across all fields of the Company’s activities and provides the basis for the prompt decision making and efficient management of the braches and subsidiaries. The implementation of the information-analytic systems has enabled the Company to increase the reliability of the data on clearing payments between the branches thanks to the on-time cross payment analysis.