Risk management in the PZU Group aims to do the following:
Risk management in the PZU Group is based on analyzing risk in all processes and units and it is an integral part of the management process.
The main elements of the integrated risk management system are aligned to one another in all of the PZU Group’s insurance companies. They have been implemented to ensure the execution of the various companies’ strategic plans and the overall PZU Group’s business objectives. They include the following:
Entities from other financial market sectors are required to apply the standards applicable to a given sector. The adopted internal regulations specify among others:
PZU exercises supervision over the PZU Group’s risk management system on the basis of cooperation agreements entered into with other Group entities and the information provided thereunder. It manages risk at the PZU Group level on an aggregate basis, especially with respect to capital requirements.
In addition, the PZU Group has processes to ensure the effectiveness of risk management at the PZU Group level. The risk management rules applicable to the PZU Group’s subsidiaries include a recommendation issued by PZU (the parent) regarding the organization of the risk management system in insurance sector and banking sector subsidiaries.
The management boards of PZU Group entities are responsible for fulfilling their own duties in accordance with the generally applicable provisions of national and international law. In particular, they are responsible for the implementation of an adequate and effective risk management system.
Supervision over the risk management systems in each regulated entity is exercised by supervisory boards. PZU designates its representatives to the Supervisory Boards of its subsidiaries, including in particular Alior Bank and Bank Pekao.