The consistent split of duties and tasks in the PZU Group and in individual subsidiaries of the PZU Group’s financial sector is based on four decision-making levels.
The first three are:
The fourth decision-making level pertains to operational measures and is divided into three lines of defense:
In the risk management process in banks (Pekao and Alior Bank), an active role is played by Management Board, Supervisory Boards and special committees dealing with credit, financial and operating risk as well as asset and liability management.
Supervisory Boards oversee the risk management process and set out a relevant strategy each year. Management Boards are responsible, among others, for accepting policies and guidelines related to risk management and for setting detailed limits to mitigate bank risk and provide adequate control mechanisms.
Special committees exercise ongoing control over the bank’s risk management, which includes decisions about the accepted level of credit risk for single transactions, recommendations of portfolio limits for credit risk to the Management Board, supervision of liquidity risk level, market risk limits and the allowed level of operational risk. In addition, they monitor the risk appetite and capital adequacy levels.