Risk Management System

Kcell JSC’s Corporate Risk Management System (CRMS) is an integral part of the Company’s operations, designed to identify, assess, and monitor all significant risks, as well as implement measures to mitigate them.

The current risk management framework is aligned with international standards, including COSO ERM and ISO 31000, ensuring that risk oversight is systematic, comprehensive, and effective.

The primary internal document governing the Company’s approach to risk is the Risk Management Policy of Kcell JSC. This policy defines the purpose, objectives, and vision of the CRMS, outlines the key principles and structure of the risk management process, and establishes a consistent methodology for its implementation across the organization.

The Board of Directors holds overall responsibility for the Company’s risk governance and reports to shareholders on matters related to risk management. The CRMS is designed to provide reasonable assurance of achieving the following objectives:

• Strategic goals – supporting long-term value creation and sustainability;
• Operational goals – ensuring efficient and effective day-to-day operations;
• Reporting goals – producing reliable and timely internal and external reporting;
• Compliance goals – adhering to applicable laws, regulations, and internal policies.

In order to ensure effective functioning of the CRMS, the Company is guided, at all levels of its activities, by the following interrelated components corresponding to the business life cycle:

1. management and culture;
2. strategy and goal setting;
3. performance;
4. monitoring and implementation of changes;
5. information, communication and reporting.

The organization structure of the Company’s CRMS is multi-level and includes the following participants in the risk management process:

• Board of Directors;
• Internal Audit Committee of the Board of Directors;
• Internal Audit Service;
• Management Board;
• Risk Management Committee;
• Risk Management Unit of the Company; and
• Business units, employees of the Company and risk coordinators.