Risk management

Risk management at the LVRTC comprises a set of measures that ensure regular risk identification and analysis and identification and introduction of risk management measures to mitigate the risk or its impact on the achievement of LVRTC objectives, as well as effective performance of tasks and functions.

Risk management is one of the key elements for the development of LVRTC services, operational compliance and continuity, reputation protection, decision-making, and business planning and management.


Planned strategic objectives for LVRTC risk management

  • Ensure centralized risk management at LVRTC
  • Ensure common understanding about the risk management system
  • Ensure that any risks that may affect investment results are always considered during strategic decision-making processes
  • Increase the individual contribution of each employee in improving the efficiency of LVRTC by performing their daily activities duly considering potential risks
  • Ensure effective risk management in project management
  • Build confidence concerning achievement of LVRTC objectives by ensuring compliance with the principles of equality, participation, transparency, accountability and fairness
  • Promote good LVRTC image

Internal rules and regulations that regulate risk management at LVRTC

  • This policy lays down joint basic principles and approaches to developing the internal control system, as well as its elements, objectives and tasks, and defines the duties and responsibilities of members of the management system in the framework of internal controls.
  • Identify measures that guide the risk management. These rules aim to introduce a common risk management system, engage in and ensure that employees have knowledge about risk-based action and decision making to ensure due performance of LVRTC functions and objectives and meeting the expected targets and indicators.

LVRTC risk management principles

  • Control measures cover all processes and operational aspects of process elements, and risks and controls should be considered by taking into account their interaction and consequences.
  • Control measures are designed and introduced in processes based on their efficiency analysis and considering the complexity of LVRTC business processes and the relevance of risks.
  • All LVRTC units are responsible for identifying, assessing, analyzing and continuous monitoring of risks in the area of their responsibility, developing and implementing the required risk management measures and controls, and their application in the framework of their competences and monitoring the efficiency of ongoing risk management measures and controls.
  • The scope and complexity of internal control measures should be necessary and sufficient to reach the objectives and to achieve risk prevention and mitigation objectives.
  • The LVRTC Board is tasked with ensuring the necessary conditions for continuous development of the internal control system considering the need to address new challenges when internal and external circumstances of the LVRTC change.

Efficient functioning of the risk management system allows to control the LVRTC financial and business performance and aims to gain reasonable assurances concerning the achievement of LVRTC objectives.