The Company identifies risks that have the strongest impact on its business, regularly assesses them, develops procedures aimed at the mitigation or prevention of negative impact, and monitors the implementation and effectiveness of risk impact procedures.
Risk description and management
Risk level
Risk description and
management
Risk of changes in consumer preferences and demand
Product mix adjustments
Understaffing as a result of reduced labour market capacity
Expanded range of social benefits for rank-and-file employees
Introduction of flexible working hours where possible
Employee development, inclusion of employees in the talent pool, promotions in line with the career track
Employer brand enhancement
Labour market monitoring and employee engagement surveys
Higher prices of imported equipment and materials
Search for alternative suppliers
Disruptions in supplies of equipment, spare parts and materials
Engagement of third-party transportation companies
Search for alternative channels to secure deliveries of spare parts for vehicles
Search for alternative suppliers
Reliance on internal resources if counterparties fail to provide support under existing contracts
Development of corporate procedures to procure spare parts and consumables
Restrictions on settlements with counterparties
Switching to alternative payment tools
Changes in the product mix
Product mix adjustments
Development of own production facilities and imports
More expensive logistics
Refocus towards alternative logistics chains
Risk of regulatory changes
Monitoring of legislative changes
Information security risks
Functioning of access control procedures and mechanisms, approved access matrices
Establishment of a software and infrastructure change management system
Data backup, duplication of key information systems
Functioning of a centralised monitoring system for information security events
Additional investments in the development of information technologies
Risks related to availability of seed lots and supplements for the Company’s Mushroom Complex, lack of fungal mycelium, availability of crop protection agents for greenhouses
Development of alternative supply channels
Signing contracts with domestic producers of mycelium, projects to produce and select mycelium
Development of crop protection agents and supplements together with producers
Risks of negative epidemiological situations impacting the Company’s activities
Real-time monitoring of the spread of COVID-19
Strict compliance with all guidance issued by Rospotrebnadzor, Russian Ministry of Health, and World Health Organisation (WHO)
Disinfection of premises
Climate-related risks (physical and transitional)
Elaboration of a plan of measures for the implementation and development of a system for identification, assessment, management and monitoring of climate-related risks
Analysis and amendment (if necessary) of the Company’s regulations with regard to climate-related risk management
Analysis of the potential application of the results of the climate-related risk assessment and business opportunities
Establishment of a team to assess climate-related risks and opportunities, hiring consultants
Hiring an external auditor to assess the quality and effectiveness of the Company’s climate-related risk management activities