GENERAL MEETING DRAFT - Bankier.pl

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>> Consolidated Financial Statements
Part E – Information on risks and related risk management policies
The Risk Committee comprises the following members: the Chief Executive (Chair of the Committee), the
Deputy General Managers, the Chief Risk Officer (chairs the Committee in the absence of the Chief
Executive) and the Chief Financial Officer, the Legal & Compliance Officer, the CEE Division Program
Officer, and the Human Resources Officer. The Head of the Group Internal Audit Department also
attends meetings of the Risk Committee, but is not entitled to vote.
In June 2009, the Board of Directors approved the Group Risk Management reorganization guidelines,
with the following objectives:
� improvement of directing, coordinating and control activities for some aggregate risks (so-called
“Portfolio Risk”), through dedicated responsibility centers (“Portfolio Risk Managers”) focusing
and specializing entirely on the abovementioned risks, from a Group and cross-divisional
standpoint;
� maintaining consistency with the Group business model, ensuring clear specialization and focus
– from a purely transactional point of view – of specific centers of responsibility on risks
originating with the Group functions assigned to assume risk, at the same time keeping these
“centers of responsibility” (“Transactional Risk Managers”) completely independent from the
functions assigned to assume risk (e.g. Business Units, Cash Management functions, Asset
Management, and CEE Countries).
With reference to Market Risk in particular, the “Markets & Balance Sheet Risks Portfolio Management”
department was created, responsible for supervising and managing the overall profile for market risk and
Group balance sheet and cash management by setting all the respective strategies, methodologies and
limits.
The aforesaid department interfaces in turn and cooperates for market risk monitoring purposes with the
so-called “Transactional” level functions responsible for all risks (market, but also credit and operational
risk) originating with the relevant Strategic Business Areas (SBAs)/Divisions (CIB&PB, Retail, Treasury,
Asset Management and CEE). For market risk purposes, the predominant exposure is found in the
CIB&PB (Corporate, Investment Bank & Private Bank) SBA, within which the Investment Banking
Division operates.
As part of the market risk reorganization described above, the structure of the Committees responsible
for market risk was reviewed. This structure has three levels:
� First-level Committees;
o Group Risk Committee
� Second-level Committees;
o Group Market Risk Committee
o Group Asset & Liabilities Committee
� Third-level Committees;
o Group Transactional Markets Committee
In general, the Parent company proposes limits and investment policies for the Group and its entities in
harmony with the capital allocation process when the annual budget is drawn up.
In addition, the Parent’s Asset and Liability Management unit, in coordination with other regional liquidity
centers, manages strategic and operational ALM, with the objective of ensuring a balanced asset position
and the operating and financial sustainability of the Group’s growth policies on the loans market,
optimizing the Group’s exchange rate, interest rate and liquidity risk.
In 2009, the Group continued to develop and expand existing models with the aim of achieving
increasing accuracy in the representation of the Group’s risk profiles for portfolios of complex financial
products.
The monitoring of these risk profiles was made even more efficient and rapid with the introduction of
individual risk limits, in addition to VaR limits, in relation to primary investment banking operations.