Rostec began an implementation project of risk management system

On August 3, 2016 the Rostec corporation announced the project of creation of the integrated risk management system (IRMS). The partner in the project Ernst & Young company.

Project Tasks

According to the statement of the press service Rostec, ISUR will help to level risks in the main groups: strategic, operational, financial, project and compliances. ISUR is considered as the instrument of increase in controllability of business processes, acceptances of more weighed management decisions and, as a result, achievement of effective objectives.

Project Progress

In Rostec the general approaches of risk management in central office and subsidiary companies taking into account the existing best practices on risk management in the Russian and foreign companies and also taking into account specifics of activity of Corporation are developed: the existing corporate management, extent of centralization of business processes and participation of central office of corporation in activity of subsidiary companies.

Rostec, (2015)

ISUR, responsible for implementation, - the chief executive of Rostec Oleg Yevtushenko.

To avoid existence risk management separately from business processes and operational management we will implement the risk management system integrated into business processes, implementing thus the decentralized model. For increase in motivation of personnel in risk management we are going to develop and enter since 2017 for employees the corresponding KPIs which achievement will influence a bonus level. Such model will allow to involve an essential part of employees in risk management and will increase viability of a system in general. Oleg Yevtushenko, chief executive of Rostec

At the first stage ISUR is implemented in central office of corporation, then the methodology will be extended to subsidiary companies. Behind central office there will be functions of the general coordination of process and carrying out verification, validation of the received results. After setting of ISUR in central office it is going to automate process.