GENERAL MEETING DRAFT - Bankier.pl

values proving inconsistent with current appraisals.
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>> Consolidated Financial Statements
Part E – Information on risks and related risk management policies
In light of the still challenging macroeconomic environment, a sound and effective risk management has
highest priority within the Group.
Therefore the Group CRO has implemented in 2009 a new risk governance model emphasizing this
guiding principle and aimed to:
� strengthen the capacity of steering, coordination and control activities of some aggregated risks
(so called “Portfolio Risks”), through dedicated responsibility centres (“Portfolio Risk Managers”)
totally focused and specialized on such risks, from a Group and cross – divisional perspective;
� enhance coherence with the Group business model, ensuring clear specialization and focus –
from a purely transactional perspective - of specific centres of responsibility on risks originated by
the Group “risk taking” functions, at the same time keeping these “centres of responsibility”
(“Transactional Risk Managers”) totally independent from the “risk taking” functions (i.e. Business
units, Treasury, Asset Management, CEE countries).
Consistently with the Risk Management architecture redesign, the set-up, role and rules of the Group
Committees responsible for risk topics have been revised. In order to strengthen the capacity of
independent steering, coordination and control of Group risks, to improve the efficiency and the flexibility
on the risk decision process and to address the interaction between the relevant risk stakeholders three
distinct levels of Risk Committees have been set-up:
� the "Group Risk Committee" being responsible for the Group strategic risk decisions;
� the "Group Portfolio Risks Committees", tasked with addressing, controlling and managing the
portfolio risks;
� the "Group Transactional Committees" that will be in charge of evaluating the single counterparts
/ transactions impacting the overall portfolio risk profile.
In accordance with the roll-out plan for the Advanced Internal Rating Based (A-IRB) criteria,
communicated to Bank of Italy in September 2008, the Group has either implemented or is in the process
to extend the A-IRB approach to further Subsidiaries of the Group that are yet to adopt this approach.
Regarding the compliance with the Pillar II of the New Capital Accord (Basel II), a specific capital
adequacy valuation process was developed in 2009, based on existing approaches. It envisages a
general framework as well as a set of specific guidelines aimed at setting out a common approach at
Group level in the areas of capital planning, the definition of risk appetite and the measurement,
management, control and governance of risks. In addition, synthesis elements concerning risks
measurement were introduced to better support processes such as capital planning and capital
adequacy. The Group’s risk profile is represented by internal capital that is calculated by aggregating
risks, net of diversification benefits, plus a “cushion” which incorporates model risk and the variability of
the economic cycle. Capital adequacy is evaluated either on the basis of Pillar I metrics or using best
practices, by comparing internal capital to available financial resources (AFR) through their ratio, named
risk-taking capacity. The achievement of capital adequacy also implies proper risk management based on
the involvement of senior management by identifying the appropriate decision-making Bodies, properly
assigning duties and responsibilities and reviewing the overall process.