Annual report 2017

We want to shape a responsible energy industry of tomorrow in our country.

Risk management

Skilful identification of risks and implementation of preventive mechanisms are the foundations of an organisation's longevity. PGE's responsible development requires a multi-dimensional and multi-level risk management system.

PGE Group companies, like other entities from the energy sector, are exposed to risks and threats resulting from the specific nature of their operations and presence in specific market and regulatory/legal surroundings.

PGE S.A., as the Corporate Centre managing the Group, shapes and implements integrated risk management architecture solutions at PGE. It especially shapes PGE Group's risk management policies, standards and practices, develops and expands internal IT tools that support this process, sets global risk appetite and adequate limits and monitors their levels.

We are consistently developing a comprehensive risk management system. In 2017, we launched a process to assess and analyse strategic risks at key Group companies. We constantly verify and improve mechanisms for the identification of areas exposed to risk and ways to measure risks. This is why significant risks in specific segments of operations are kept within set boundaries by limiting the negative impact of these threats and taking pre-emptive or corrective actions in accordance with the following cycle.

Risk management at PGE is exercised based on:

  1. GRC model.
  2. Three lines of defence concept.
  3. Front-middle-back office structure.

These solutions make it possible to adapt and integrate the risk management process at all management levels in each area of the Group's activities.

GRC model

Governance – having established a Risk Committee at top executive level, which directly reports to the Management Board, supervision over the effectiveness of risk management processes is ensured across the entire Group.

Risk – defining risk management functions within the Risk Department makes it possible to independently analyse specific risks (ERM - Enterprise Risk Management, market, financial) and their impact on PGE Group.

Compliance – establishing a compliance function guarantees that PGE Group operates in line with legal conditions and ensures the observance of internal norms, strengthens monitoring of the legal environment, whilst increasing successful identification of potential gaps.

Three lines of defence concept


Front-middle-back office

Located at the Corporate Centre, the Risk Department (middle office) is organisationally and functionally independent of the Group's business activities (front office) and of transaction clearing/recording (back office). Thanks to this, risk analysis is independent and objective.


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