The key element of the corporate governance arrangements is the enterprise risk management system (ERMS), which aims to identify, assess, monitor, and promptly mitigate potential risk events that could negatively affect Turkistan Oil Refinery, its subsidiary, and dependent entities’ ability to achieve their operational and strategic goals. Turkistan Oil Refinery has approved the Enterprise Risk Management System Policy, which outlines the development areas and intents, risk management tenets, and the necessity for implementing and operating a vertical process of industrial and non-industrial risk management, starting at the top level and descending to the line level (an industrial structural unit of an SDE). Turkistan Oil Refinery has also developed the mechanisms of implementing the Company’s ERMS Policy:

• Model Rules of Organizing the Process of Management of Instustrial and Non-industrial risks in the Company;
• Methodology for Identification and Assessment of Risks, Selection of the Method of Managing the Company’s Risks;
• Rules of Amending the Unified Risk Classifier of the Company.

On an annual basis, the Board of Directors of Turkistan Oil Refinery adopts the Company’s overall risk appetite, corporate risk Registrar, and risk map. The Turkistan Oil Refinery Risk Management Department constantly examines the evolution of the major risks and the application of the mitigation measures. The Company places a high priority on the creation of a risk-aware culture.

To this end, the SDEs and all structural divisions of Turkistan Oil Refinery are involved in the risk management process, and the Board of Directors, Management Board, Risk Committee, and employees of Turkistan Oil Refinery regularly exchange information. For the SDEs and staff of Turkistan Oil Refinery, risk management training is provided. As it relates to the creation and implementation of the internal control system (process level risk management) and the business continuity management system, Turkistan Oil Refinery provides for work on further improving the Company’s ERMS (management of risks leading to business interruption).