Risk management objective and principles

Introduction Enterprise risk management strategy

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 negatively (threat), as well as positively (opportunity).

In line with its Strategy the Company 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, TAURON Capital Group’s risk management is to ensure increased predictability of achieving its strategic goals, sustainable (stable) generation of its financial results, the protection of TAURON Capital Group’s current economic value (preventive function), as well as support for the decision-making processes.

TAURON Capital Group’s risk management:

  1. is based on the risk management process that provides comprehensive and consistent rules for identifying, measuring and responding to risk,
  2. covers all elements of the value chain,
  3. provides centralized risk measurement, monitoring and control function, and also ability to evaluate the full risk profile in the organization and consistent risk management principles,
  4. ensures independence of the risk-taking function from its control and monitoring,
  5. ensures a clear split of competences and responsibilities, in particular by introducing the risk ownership function,
  6. is a pro-active process, focused on an appropriately early identification of threats, allowing for taking preventive measures,
  7. 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,
  8. places a strong emphasis on developing awareness, training and encouraging personnel to use the knowledge of risks in daily activities,
  9. co-creates TAURON Capital Group’s internal audit (control) system, constituting, along with the compliance and security management functions, an element of the Three Line Defense Model.