Kazakhmys’ risk environment has improved significantly over the past few years with progress being made in better understanding and managing the Group’s significant risks and embedding a risk governance framework in operational management processes. Overall management of these risks is vested in the Board, with the Audit Committee having delegated authority for reviewing the Group’s risk management framework.

MANAGING GROUP RISKS

The Group, in the course of its business activities, is exposed to operational and financial risks. The Group’s approach to internal control is business risk driven, with emphasis on both operational and financial risks as explained in the Governance Framework.

The Board has approved a formalised but pragmatic Group risk management framework. This framework is designed to provide assurance that risks are being identified and managed in a manner appropriate to the Group’s circumstances. It comprises risk identification and assessment processes, together with risk response and monitoring activities.

The Group Risk Manager coordinates the risk assessment and identification activities, and facilitates the development of appropriate responses to identified risks. Details of the process for identifying and managing the Group’s risks is set out below and an overview of the risks identified are set out in the risk factors.