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Risk appetite

The risk profile and tolerance limits which reflect its strategic plans and objectives of the entire PZU Group. Such an attitude ensures appropriateness and efficiency of the risk management system in PZU Group and prevents risk acceptance at a level which could pose a threat to the financial stability of individual companies or the entire PZU Group.

The risk appetite is defined in PZU Group as the amount of risk taken in order to achieve business objectives and its measure by the level of potential financial losses, decrease in the value of assets or an increase in the value of liabilities in the period of one year.

The risk appetite determines the maximal level of acceptable risk when setting individual partial risks limits and restrictions which, when exceeded, results in taking actions necessary to limit further risk growth.

The way of determining the risk appetite and risk limits is cohenrent in all insurance companies of PZU Group. The Management Board in each company determines the risk appetite, the risk profile and tolerance limits which reflect its strategic plans and objectives of the entire PZU Group. Such an attitude ensures appropriateness and efficiency of the risk management system in PZU Group and prevents risk acceptance at a level which could pose a threat to the financial stability of individual companies or the entire PZU Group. The company’s Management Board is responsible for determining the appropriate risk level for that company, whereas the risk unit reviews the level risk appetite once a year and all the activities are coordinated at the level of the Group.