EN
PL
Risk management is aimed at:
- increasing the value of PZU Group through active and conscious management of risk assumed;
- preventing acceptance of risk at a level which could threaten the financial stability of PZU Group.
Risk management in PZU Group is based on risk analysis of all processes and units. Risk management is an integral part of the management system.
The main elements of risk management are consistent for all companies of PZU Group and implemented in a way which ensures the implementation of both strategic plans of individual companies and business objectives of the whole PZU Group. These include i.a.:
- systems of limits and restrictions of the acceptable risk level, including the level of risk appetite;
- processes of identifying, measuring and assessing, monitoring and controlling, reporting and managing actions with respect to the individual risks;
- organizational structure of risk management, in which Management Boards and Supervisory Boards of companies as well as dedicated Committees play the key role.
The risk management system of PZU Group is based on the following:
- organizational structure – including division of responsibilities and tasks performed by statutory bodies, committees as well as individual organizational units in the risk management process;
- the risk management process – including the methods of identification, measurement and assessment, monitoring and control, reporting risk and taking management action.
Risk management strategy at PZU Group and individual PZU Group's companies defines the framework of risk management by setting out limits of risk parameters (the definition of risk appetite and risk profile), indicating the roles and responsibilities of participants in the risk management, and its process. It is also used to improve business planning and maintaining the risk on an acceptable level.
The strategy and related policies of individual risk category management are aimed at:
- introducing a uniform definition of risk management;
- introducing the principles of identification, measurement and assessment, monitoring and control of risks, as well as decision-making with respect to their magnitude.
- determining the risk appetite and risk profile.
As part of the preparation to implement the Solvency II system, PZU Group’s insurance entities were primarily covered by coherent, integrated risk management system of PZU Group. The approach introduced in 2015 ensures compliance with the requirements of the act of 11 September 2015 on insurance and reinsurance activity (Journal of Laws of 2015, item 1844), which came into force on 1 January 2016. Entities from other sectors of the financial market are required to apply standards that are appropriate to their sector. Adopted internal regulations specify:
- processes, methods and procedures for measuring and managing risk;
- division of responsibilities in the risk management process;
- scope, conditions and frequency of risk management reports.
PZU supervises the risk management system of PZU Group on the basis of cooperation agreements concluded with PZU Group’s entities. On the basis of received information, PZU manages the risk of PZU Group in aggregate terms. Concluded agreements and the scope of shared information include the legal specificity of given entities, including limitations due to banking secrecy.
In order to guarantee the effectiveness of risk management at the level of PZU Group, the risk management principles including PZU recommendation in the scope of risk management system organization (both in the insurance and banking sectors) have been introduced in the subsidiaries.
Management Boards of PZU Group’s entities are responsible for fulfilling their obligations in line with generally applicable local, European and international legal regulations, in particular, implementing adequate and effective risk management system.
Supervisory Boards, which PZU appoints their representatives to, supervise risk management systems as implemented in respective regulated entities.
