At the foundation of the company's sustainability is skilful identification of risks and implementation of risk mitigation mechanisms.

Risk management system

At the foundation of the company's sustainability is skilful identification of risks and implementation of risk mitigation mechanisms. PGE's responsible development would not be possible without a multi-dimensional and multi-level risk management system.

PGE Group companies, just like other entities in the power sector, are exposed to risks and threats resulting from the specific nature of operating activities and functioning in a specific market and regulatory/legal environment.

Risk management at PGE Group is exercised based on the following:

A. GRC model
B. Three lines of defence concept
C. Front-middle-back office structure

Such solutions make it possible to adapt and integrate the risk management process across all levels of management in specific areas of the Group's operations.

A. Model GRC

Governance – having established a Risk Committee at top executive level, which directly reports to the Management Board, supervision over the effectiveness of risk management processes is ensured across the entire Group.

Risk – defining risk management functions within the Risk Department makes it possible to independently analyse specific risks (ERM - Enterprise Risk Management, market, financial) and their impact on PGE Group.

Compliance – establishing a compliance function guarantees that PGE Group operates in line with legal conditions and ensures the observance of internal norms, strengthens monitoring of the legal environment, whilst increasing successful identification of potential gaps.

B. Three lines of defence concept

C. Front-middle-back office

Located at the Corporate Centre, the Risk Department (middle office) is organisationally and functionally independent of the Group's business activities (front office) and of transaction clearing/recording (back office). Thanks to this, risk analysis is independent and objective.