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Information on risk management

The JSC "Kazakhtelecom" introduced corporate risk management system (CRMS), which is an important condition for achieving the strategic and operational goals of the Company.

Within the CRMS, the Company operates regulatory and methodological documentation on risk management, the roles and responsibilities of the Company's management, constant monitoring and control of risks.

The Company's risks are reflected in the risk Register, which is approved by the Board and is in the process of constant renewal. Each of the risk from Register is in the process of evaluation of the level of probability of its implementation and the amount of the consequences. To work on the analysis and control of the risks involved as internal experts of JSC "Kazakhtelecom" and the world's leading risk management consultants. The company has a Risk Management Committee, which is a body under the Management Board shall take decisions on the management of key risks of the Company.

According to the approved by the Board Risk Management Policy, the main purpose of CRMS is to achieve a balance between the maximum use of opportunities to obtain benefits and prevent the loss of the Company below the permissible level.

Strategic risks are reflected in the Company's long-term development strategy of the Group of companies of JSC "Kazakhtelecom" until 2020, approved by the Board of Directors.

In the medium term development plan of the Group of companies of JSC "Kazakhtelecom" for 2011-2015 (hereinafter - the Development Plan) have been reflected the target values ​​of key performance indicators (KPI).

JSC "Kazakhtelecom" pays special attention to risk assessment and control, both strategic and financial, operational and other risks affecting the achievement of strategic objectives, as reflected in long-term strategies and targets for performance efficiency of the development plan.

The Company constantly monitors the latest developments in the world's best standards of risk management for companies in the real sector of the economy. JSC "Kazakhtelecom" exchange of experience with leading telecommunications companies, to put into practice the advanced risk management standards, such as a group of standards ISO 31000. In the practice of risk management of JSC "Kazakhtelecom" adheres not only to the world of risk management standards and best practices of risk management leading telecom companies but also takes into account the specifics of JSC "Kazakhtelecom".

As part of the corporate risk management system for each of the risks identified and approved a set of measures aimed at addressing the causes as the realization of the risks and minimizing the consequences in the event of the implementation of risk events.

For each of the measures aimed at risk management, there were identified the responsible leaders. Constant monitoring and control of the implementation of the measures take place.

Risk Register, including information on risk assessment and management of ongoing activities to periodically pass the compulsory procedure for the revision and updating. When adjusting the strategic objectives and development plans of the Company adjusted accordingly work on risk management.

The Company's risk management processes are automated, integrated with the processes of strategic and operational financial planning of the Group and are an integral part of the corporate governance of the Company