Major risk map

Deterioration of the economy: the rise in inflation and unemployment, reduction of the real disposable income may affect the reduction of transport activity and the population’s purchasing power.

Introduction of the long-term subsidisation system.

Improvement of the quality of services to substantiate the increase in prices and reduce the loss of customers to air transport.

Application of dynamic pricing.

Change of price based on the elasticity of demand for the price and comfort.

Application of various marketing initiatives: special tariffs for domestic and international long-distance trains.

Implementation of competitive strategy for passenger retention and attraction of new passengers using other means of transport.

Using innovative rolling stock, including:

• purchase of 50 double-decker cars to organise double-decker train communication on the most loaded routes, such as Moscow — St. Petersburg, as well as approval of two-storey carriage with seating;

• use of sleeping RIC carriages for international transportation in the trains Moscow—Prague, Moscow—Helsinki,Moscow— Warsaw, Moscow—Paris, Moscow—Nice.

Optimisation of the movement of trains, including their acceleration.

Long-term planning of supply needs

Conclusion of mutually beneficial long-term contracts with suppliers

Development and implementation of a long-term strategy of FPC’s innovative development.

Building the infrastructure and identifying the sources for FPC’s innovative development.

Purchase of up-to-date rolling stock, which meets international standards.

Events occurring due to violation of safety rules.

Equipment failures.

Implementation of traffic safety management system in JSC FPC.

Analysis of traffic safety and equipment failures.

Carrying out technical inspections and traffic safety organisation audits.

Analysis of non-destructive testing activities and development of measures for their improvement.

Implementation of security and communication monitoring systems on staff cars of passenger trains.

Carrying out technical audits of repair shops of the Branches’ business units.

Carrying out fire safety compliance audits in trains.

Modernisation of passenger cars in terms of compliance with fire safety requirements.

Equipping JSC FPC facilities with security and fire alarms and automatic fire extinguishing devices.

Modernisation of rolling stock and civil engineering structures of JSC FPC’s branches’ business units.

Measures for saving and protection of water resources used for production purposes.

Carrying out preventive measures in cooperation with the Central Directorate on Transport of the Ministry of Internal Affairs, the FSB, the Security Department of the JSCo RZD and regional security centres of JSCo RZD.

Strengthening the access mode and internal security regime at the JSC FPC’s facilities.

Proving the JSC FPC’s transport facilities with engineering and technical transport security equipment.

Retraining and transfer of laid-off employees to vacant positions in the FPC or Holding Company.

Development of the internal labour market in the FPC and Holding Company.

The increased use (work load) of the assets, being optimised, through diversification of activities.

Possible increase in negative public relations as a result of train cancellations and issues relating to passenger transport subsidies.

Public pressure is associated with an increase in customers’ quality requirements and requirements to the services provided by JSC FPC.

Negative rating in case of poor travel conditions on FPC’s trains.

Increased competitive pressure from aviation and road carriers.

Forecasted passenger traffic decrease due to objective factors.

Communication campaign of certain intensity in socio-political printed media, business and specialised publications, as well as online.

Participation in trade exhibitions and conferences. Holding image-strengthening events.

Generation of positive external evaluation of the Company by the expert community.

Monitoring consumer loyalty to the JSC FPC’s activities (initiating and maintaining passenger feedback). Monitoring negative reports about the Company in the information space, carrying out crisis management, if necessary, for leveling the negative news flow.

Monitoring of competitors — the key players in the market of transport services in the aviation, automotive and railway sectors, ensuring the Company’s presence in the competitors’ information field.

Compliance with industrial, fire and environmental safety legislation.

Regular employee training and certification, production control in terms of occupational safety and fire safety prevention work.

Maximum interest rates on loans are limited by conditions of the long-term contracts, signed with creditor banks on the basis of public tenders. Revision of interest rates in accordance with the conditions of loan agreements can be implemented only by mutual agreement of the parties.

The use of standard terms of payment aimed at minimising upfront payments and pre-payments for contractors’ services.

Setting up a requirement for risk group contractors to provide bank guarantees to ensure fulfillment of their obligations.