TAURON Capital Group’s risk management objective and principles
At TAURON Capital Group risk is understood as an uncertain occurrence or a group of occurrences that, in case of materializing, will have an impact on achieving by TAURON Capital Group of its defined strategic goals, both a negative one (threat), as well as a positive one (opportunity).
In line with its Strategy TAURON Polska Energia is implementing the process of managing the risk related to the operations of TAURON Capital Group. The primary goals of risk management include ensuring the broadly understood security of TAURON Capital Group’s operations. In particular, risk management is to ensure increased predictability of the Group achieving its strategic goals, including sustainable generation of its financial results and protection of the Group’s current economic value (preventive function), as well as supporting decision-making processes.
TAURON Capital Group’s risk management:
- It is based on the risk management process that provides comprehensive and consistent rules for identifying, measuring, planning and responding to risk as well as communications among the process participants.
- Covers all elements of the value chain.
- Provides centralized risk measurement, monitoring and control functions, and also the ability to evaluate the full risk profile in the organization and consistent risk management principles.
- Ensures independence of the risk taking function from its control and monitoring.
- Ensures a clear split of competences and responsibilities, in particular by introducing the risk ownership function.
- Oversees the Risk Committee as an expert team that initiates, analyzes, monitors, controls and supports the functioning of the risk management system at TAURON Capital Group on a permanent and continuous basis.
- Is a pro-active process, focused on an adequately early identification of threats, allowing for taking preventive measures.
- Is a systematic and continuously improved process which allows for aligning it on an ongoing basis to TAURON Capital Group’s specifics and organizational structure, as well as to the changing environment.
- Places a strong emphasis on developing awareness, training and encouraging personnel to use the knowledge of risks in daily activities.
- Co-creates TAURON Capital Group’s internal audit system, constituting, along with the compliance assurance and security management functions, an element of the Three Line Defense Model.
- It uses tools to effectively implement the process, i.e. risk charter (card), risk register, risk response plan, volatility models, scoring models and risk limits.
- It is based on a risk model that defines a consistent classification of risks, enabling their uniform and comprehensive recognition at TAURON Capital Group’s level.
