Risk management objective

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.

Risk management aims to:

  • increase the value of PZU Group through active and conscious management of the amount of exposure at risk;
  • prevent taking risk at a level which could threaten the financial stability of PZU Group.

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.

The main elements of an integrated risk management system are consistent for all insurance companies of PZU Group and implemented in a way which ensures the realization of strategic plans of individual companies and ensures business objectives of the whole PZU Group. They include, among others:

  • systems of limits and restrictions of the acceptable risk level, including the level of risk appetite;
  • processes of identification, measurement and assessment, monitoring and control, reporting and management actions with respect to individual risks;
  • risk management organizational structure, in which Management Boards and Supervisory Boards of companies, as well as dedicated Committees, play the key roles.

Companies from other financial market sectors are obliged to follow the standards relevant to a given sector. In internal regulations adopted by them they specify among others the following:

  • processes, methods, and procedures that enable risk measurement and management;
  • segregation of duties in the risk management process;
  • scope, terms and conditions, and frequency of reporting on risk management.

PZU supervises the PZU Group risk management system under cooperation agreements with PZU Group entities and on the basis of information provided as per such agreements, as well as manages PZU Group aggregated risk.