In the dynamic realm of business, SIERRATURK Holding recognizes that true success requires more than just ambition, it mandates a forward-thinking approach to anticipate and counter potential risks that might hinder growth and impact operations.

Introduction

Risk management has gained significant importance in the business world, drawing increased attention from stakeholders. It now plays a crucial role in strategic decision-making, helping organizations tackle uncertainty and become an integral part of their operations. Demonstrating our dedication to robust risk management practices, SIERRATURK Holding’s Azerbaijan office has achieved prestigious conformity with the ISO 31000:2018 Risk Management Certificate, audited by LRQA—a renowned subsidiary of Lloyd’s Register Group Limited, known for its trusted ISO certifications.

Strategy

SIERRATURK Holding recognizes the significance of risk management in maintaining good corporate governance. We employ advanced techniques to mitigate excessive risk in specific areas of our business, with the ultimate goal of maximizing value for our shareholder. Our approach, Enterprise Risk Management (ERM), is implemented across all our companies, seamlessly integrating risk management into our strategies and operations. This ensures that we can assess and handle the risks we encounter while creating value.

Policy

At SIERRATURK Holding, we adhere to international standards, including ISO 31000 and COSO framework, for effective risk management. To facilitate this, we have developed two crucial documents—the Holding Risk Management Policy and the Risk Management Guideline. The Policy sets the standards and processes for identifying, assessing, prioritizing, and managing risks across the Holding and its subsidiaries. Complementing the Policy, the Guideline provides valuable guidance for decision-making, objective setting, and performance improvement. These documents serve as essential resources for individuals involved in creating value and managing risks within our holding.

In recognition of the diverse nature of the business world and the unique risks associated with different industries, SIERRATURK Holding adopts a proactive approach to risk management. Each subsidiary company establishes a reliable system tailored to manage risks specific to their industry, ensuring a customized approach that prevents potential issues within our diverse portfolio.

Risk Committees

SIERRATURK Holding has established Risk Committees within the Group to further strengthen the risk management infrastructure. These specialized bodies play a pivotal role in shaping the risk management landscape by formulating policies, monitoring implementation, and ensuring adherence to best practices. By fostering effective collaboration among diverse stakeholders, the Risk Committees contribute to proactive risk identification, evaluation, and mitigation, thus fortifying the risk management ecosystem within the Holding and its affiliated entities.

Furthermore, we prioritize continuous improvement and knowledge sharing. Our Risk Management division conducts annual training sessions to equip employees with a solid understanding of risk management concepts, principles outlined in our Risk Management Policy, and practical guidance on using risk management tools. Through these efforts, we empower our workforce to effectively handle risks in their respective roles.