Annual report - HSE

2.12 Risk management
The HSE Group established a system of operating risk management. Exposure to
various risk types that the HSE Group faces in all areas of operations, particularly in the
production and marketing of electricity and consequently also in the financial area has
been regularly monitored and activities for their management have been performed.
Risks can be broadly classified into the following categories:
• market risks,
• quantity risk,
• financial risks,
• corporative risks,
• information system risks,
• R&D risks,
• human resources risk,
• etc.
Risk management involves identification, measurement or assessment, controlling and
monitoring of risks the group is or might be exposed to. In doing so, our goals are most of
all timely identification of potential threats and related risks, their monitoring and prompt
actions to ensure they only result in the smallest possible deviations from projected results.
Based on the analysis of HSE Group’s operations in 2012, we estimate that risks were
managed adequately, considering existing limitations.
With the purpose to improve control over the risk management system within the HSE
Group, risk management committees were established in the Group companies operating
in the Republic of Slovenia and the Constitutional Act on Internal Audit Function in the HSE
Group Companies was signed.
2.12.1 Report on work of the risk management
committee of HSE for the year 2012
In the period of poor economic growth or even recession and simultaneous opening of
electricity markets, risk management is extremely important. Structural changes in electricity
production and the EU policy for promotion of RES-based production render it all the
more complex. Therefore, in addition to expert services, the HSE owner and management
are in need of another body that will be multidisciplinary and able to assess the risks of the
industry from all perspectives. This role was assigned to the Risk management committee
(hereinafter: Committee), which acts in accordance with its proper Rules of Procedure.
Committee meetings
In 2012, the Committee held 6 meetings, where it discussed risk-related issues, while
considerably focusing on implementation of its decisions. The basis for the Committee’s
activities is the work programme, adopted within the scope of the business plan. In 2012,
the Committee adopted 81 decisions, most of which were carried out.
A professional support for the Committee was provided by the HSE Internal Audit Service,
which was taking care also of regular publishing on the Committee’s website within the
framework of the company’s documentation system.
Annual Report HSE 2012
2 Business Report
82