Risk Management System

Risk management is a process that begins with strategy development and affects the entire organization's activities. It aims to identify potential events that could affect the SSIF and manage the risks associated with these events.

SSIF risk management is carried out with the participation of the Board of Directors, the Management Board, the Internal Audit Service, structural units - risk owners, and the structural unit responsible for risk management. The risk management system  (hereinafter - RMS)  of the SSIF is based on the “Three Lines of Defense” model, which offers a balanced approach in determining the roles and responsibilities of all participants in the RMS: in any organization, each employee bears joint responsibility for risk management within the framework of their functionality.

Main tasks of the RMS:

• timely identification of SSIF risks;
• preventing the realization of risks and reducing their consequences to an acceptable level;
• informing members of the Management Board and the Board of Directors of the SSIF on risk management issues;
• monitoring the impact of risks on financial stability, achievement of strategic and operational goals and on the reputation of the SSIF;
• maintaining local regulations of the SSIF in the field of risk management up to date 
• development of a culture of risk management in the SSIF, in particular, through training events for employees

By the decision of the SSIF Board of Directors dated December 24, 2024, the RMS basic documents were approved:

RMS Policy - defines the goals, objectives, principles and methods, general organization and processes of the RMS;

RMS Rules - regulates the activities of RMS participants in each process; determines the timing and frequency of risk management processes.

The following documents are also approved annually:

The risk register includes a description of risk owners, key risk indicators, risk factors, a list of preventive risk management measures, reactive measures planned in the event of risk realization, a description of the consequences of risk realization, and risk assessment parameters. The risk map is generated based on the resulting risk register in the form of a heat map. 

The risk appetite is a document defining the qualitative and quantitative level of risks that the SSIF is prepared to accept to achieve its strategic goals and objectives.

Monitoring the state of the RMS on an ongoing basis, including by reporting shortcomings in the risk management process identified during ongoing monitoring, with further implementation of corrective actions to eliminate the identified shortcomings.