Risk management and risk mitigation

The Company’s risk management policy is a comprehensive system, which promptly identifies risks, measures their scale, and responds to them in a timely fashion in order to limit their impact on the Company’s business. The Company has adopted a probabilistic approach to the assessment of risks, measuring their impact on the Company’s financial results by means of mathematical models.

The Company has set up a risk management division. Risk management functions are allocated between the Board of Directors, the Executive Board, the Audit Committee, the risk management division and other divisions of Aeroflot.

Risks are managed at all levels of management and in all functional and project areas.

Risk management scheme:

Risk map

The Company implements a number of measures in priority areas in order to minimize risk, including:

• insurance;
• hedging;
• limit-setting;
• requiring coverage;
• raising personnel qualifications.

The Company’s work on risk minimization significantly reduces the probability of negative consequences and probable scale of losses for most risk categories.

Diagram. Risk map after measures taken