Russian Railways’ risk map for 2020 and 2021
Business line
- Traffic safety
- Government relations
- Public relations (PR and communication with the business community)
- Freight transportation
- Procurement
- IT and information security
- Capital construction, upgrade and overhaul
- Corporate security
- Corporate governance
- Corporate governance and coordination at the railway domains
- Corporate governance of affilates
- Corporate programmes and initiatives
- International operations
- Traffic management
- Organising and conducting audits, control activities
- Passenger transportation
- Legal support and compliance (excluding corruption risks)
- Infrastructure services
- Locomotive traction services
- Other services
- Infrastructure and rolling stock development
- Strategic planning and target setting
- Inventory management / logistics
- Property management
- Intangible asset management
- HR management (personnel and social development)
- Social facility management
- Reporting
- Economics and finance
- Operation, maintenance and repairs of infrastructure facilities (infrastructure maintenance and repairs)
- Rolling stock operation, maintenance and repairs (rolling stock maintenance and operation)
As of 2021, the following areas have the most material changes in risk assessment compared to 2020:
- IT and information security, which is primarily connected with the increasing attention of Russian Railways’ customers to this area as well as more stringent regulatory environment and specific features of the processes as a result of the pandemic;
- passenger transportation amidst the COVID-19 pandemic and related restriction risks.
At the same time, there is a positive trend in traffic management, locomotive traction services and management of social facilities.
Key measures to mitigate risks implemented in 2020 by business lines included:
- review and improvement of internal processes for identifying key gaps, developing and implementing systematic mitigants to reduce risk impact and prevent future negative developments (including enhancement of the Company’s internal regulations), based, among other things, on the best practices;
- automation and digitisation, including measures to improve the reliability and efficiency of data, reduce the human factor and manual labour, and increase the speed of management decision-making;
- legislative initiatives aimed at increasing the transparency of the Company’s operations, including through implementing the regulatory guillotine mechanism to eliminate outdated regulations;
- employee training and increasing the level of employee competencies;
- taking into account the factors in connection with the COVID-19 spread, economic downfall in the countries of operation, changes in foreign exchange rates, changing geopolitical situation in some countries of operation, including development and implementation of respective mitigants to ensure, inter alia, health and safety of the employees and customers and ability of the Company to continue as a going concern.