46.1. Organizational structure of risk management

[Financial notes are presented in PLN thousand]

The Supervisory Board provides supervision over the risk management system, assessing its adequacy and effectiveness. Moreover, the Supervisory Board supervises the compliance of the Group’s policy with respect to risk taking with the Group’s strategy and financial plan. Carrying out their tasks, the Supervisory Board is assisted by the Risk Committee.

The Management Board is responsible for the development, implementation and functioning of risk management processes by, among others, introduction of relevant, internal regulations, taking into consideration the results of internal audit inspections.

The Management Board is responsible for the effectiveness of the risk management system, internal control system, internal capital computation process and the effectiveness of the review of the process of computing and monitoring of internal capital. Moreover, the Management Board introduces the essential adjustments or improvements to those processes and systems whenever necessary. This need may be a consequence of changes to risk levels of the Group’s operations, business environment factors or irregularities in the functioning of processes or systems.

Periodically, the Management Board submits to the Supervisory Board concise information on the types, scale and significance of risks the Group is exposed to, as well as on methods used in the management of such risks.

The Management Board is responsible for assessing, whether activities such as identification, measurement, monitoring, reporting and control or mitigation are carried out appropriately within the scope of the risk management process. Moreover, the Management Board examines whether the management at all levels is effectively managing the risks within the scope of their competence.

Performing these risk management tasks, the Management Board is supported by the relevant committees:

• Assets, Liabilities and Risk Management Committee – in market risk management, liquidity and capital adequacy,
• Liquidity and Market Risk Committee, acting as support for the Assets, Liabilities and Risk Management Committee – in liquidity and market risk management,
• Operational Risk Committee – in operational risk management,
• Credit Committee – in making credit decisions within the powers, and in the case of issuing recommendations on the largest transactions presented to the Management Board for decision,
• Safety Committee – in the field of security and business continuity management,
• Model Risk Committee – in model risk management,
• Recovery Plan Committee – for supporting the proces of creating, maintaining and updating the Recovery Plan prepared in accordance with applicable law.