In an article entitled Defence lines: Withstanding the risks, Anton Oussov, Head of the KPMG Oil & Gas practice in Russia and the CIS, comments on risk management, internal control and internal audit procedures, whose implementation allows companies to significantly increase corporate governance quality and to adequately react to a number of external threats.
Anton gives a detailed overview of the Three Defence Lines, Internal Control (including its differentiation from internal audit) and Risk Management models, and highlights their main components and specifications that require additional attention.
"The majority of Russian oil & gas companies have to a certain degree already implemented some aspects of the above models. However, a systematic approach to risk management and internal control issues, and, furthermore, using the output of this approach for actual risk management, creating added value and increasing competitiveness, can be witnessed in only a few of the most progressive organisations," concludes Anton. "Still, we are convinced that creating such a system in times of pricing instability in the sector will maximise internal resource usage efficiency in a company, and also reduce costs and increase the company's ability to come through the challenging times."
© 2021 KPMG refers JSC “KPMG”, “KPMG Tax and Advisory” LLC, companies incorporated under the Laws of the Russian Federation, and KPMG Limited, a company incorporated under The Companies (Guernsey) Law, as amended in 2008, member firms of the KPMG global organization of independent member firms affiliated with KPMG International Limited, a private English company limited by guarantee. All rights reserved.
For more detail about the structure of the KPMG global organization please visit https://home.kpmg/governance.