Corporate governance

The main element of the Fund's risk management process is its integration with the specifics the organization, the basic principles of activity, business processes and engagement each employee is involved in the risk management process. Taking into account the main objectives JSC "National Managing Holding "Baiterek" as a managing Holding Company, as well as the consolidation of financial results of the financial statements process The implementation and improvement of the risk management system is directly supervised A holding company.

The implementation of the Fund's corporate risk management system is based on the establishment of and the development of the necessary infrastructure and culture, as well as covers the application of logical and systematic methods of identification, analysis and evaluation, monitoring control and risk management inherent in all areas of activity, functions or the Fund's processes, in order to prevent losses and maximize benefits. The main one An element of the Fund's risk management process is its integration with the specifics the organization, the basic principles of activity, business processes and engagement each employee is involved in the risk management process.

The risk management structure in the Fund is represented by risk management at several levels levels involving the following bodies and divisions of the Fund: Board of Directors, Management, the structural unit responsible for risk management, Service internal audit and other structural divisions.

Первый уровень представлен Советом директоров Фонда. Совет директоров играет ключевую роль в осуществлении надзора за системой корпоративного управления рисками. Совет директоров осуществляет часть функций в области управления рисками через создание соответствующих комитетов при Совете директоров.

The Internal Audit Service of the Fund performs an audit in the process of risk management risk management procedures and risk assessment methodologies, as well as the development of proposals to improve the effectiveness of risk management procedures, presentation the report on the assessment of the effectiveness of the risk management system for the Board of Directors of the Fund, as well as monitoring the implementation by the Management Board of the decisions of the Board of Directors of the Fund

The second level is the Board of the Foundation, responsible for organizing an effective system risk management and creation of a risk control structure to ensure to comply with and follow corporate policies. The Board is responsible for creating a culture of "risk awareness" that reflects the policy of risk management and the philosophy of the Foundation. The Board is also responsible for creating an effective management system risk management so that employees have clearly defined risk management obligations and they are responsible for fulfilling their duties. The Management Board has the right to carry out part of the functions in the field of risk management through the creation of appropriate committees.

The third level in the risk management process is the structural unit of the Fund, responsible for risk management. Employees of the structural division of the Fund, responsible for risk management, must interact with others divisions and the Sole Shareholder, as well as external and internal auditors The Fund for the effective implementation of the goals and objectives of the risk management system.

Operational risk management in the Fund is carried out on an ongoing basis for each area of the Fund's activities and takes into account the following:

• the ability of the Fund to achieve its goals;
• the work performed by employees of the structural divisions of the Fund;
• matching the skills of employees and their further development for the needs of the Fund.

Legislation of the Republic of Kazakhstan and recommendations of the Basel Committee they are fundamental for determining operational risks and classification operational risk events.

The Fund's operational risk management structure:

• The Board of Directors of the Foundation;
• The Board of the Foundation;
• The Fund's Risk Management Department;
• Structural divisions of the Fund;
• The Fund's Internal Audit Service.

The Fund's internal control system is defined as a set of policies, processes and procedures, standards of conduct and actions that promote reliable and rational activities that allow the Fund to respond appropriately significant risks in terms of achieving the goals of the Fund.

The Fund delineates the competence of the bodies included in the internal control system, depending on their role in the development, approval, and application processes and evaluation of the internal control system in accordance with the requirements of the legislation, The Charter of the Foundation and the model of the Committee of Sponsorship Organizations of the Treadway Commission "Internal Control - Integrated Model" from 2013 (COSO).

The internal control system consists of procedures for timely information the Fund's bodies about any significant shortcomings and weaknesses of control with details of the activities that have been undertaken or should be undertaken, and it must be able to respond promptly to risks.

The bodies and structural divisions of the Fund strive to keep the time as short as possible deadlines to ensure the transfer of relevant information to authorities and/or persons, authorized to make decisions on the elimination of any significant deficiencies and weak points of control.

The internal control system in the Fund is based on the following principles:

• smooth operation;
• accountability of all subjects of the internal control system;
• Division of responsibilities;
• proper approval and approval of transactions;
• ensuring the independence of the Internal Audit Service and its functional accountability directly to the Board of Directors (through the Audit Committee);
• responsibility of all subjects of internal control working in the Fund for the proper performance of control functions;
• implementation of internal control on the basis of clear interaction of all bodies and departments of the Fund;
• постоянное развитие и совершенствование;
• timely transmission of messages about any significant shortcomings and weak points of control.