KGHM’s Management and Supervisory Boards are responsible for the effectiveness of the risk management process.
Risk management in KGHM Polska Miedź S.A. Capital Group The KGHM Group defines risk as uncertainty, being an integral part of the activities conducted and having the potential to result in both opportunities and threats to achievement of the business goals. The current, future, actual and potential impact of risk on the Group’s activities is assessed.
Based on this assessment, management practices are reviewed and adjusted in terms of responses to individual risks. Under the Corporate Risk Management Policy and Procedure and the Rules of the Corporate Risk Committee approved in 2013, the process of corporate risk management in the KGHM Polska Miedź S.A. Group is consistently performed. Risks in various areas of the Group’s operations are continuously identified, assessed and analysed in terms of their possible limitation.
Key risks undergo in-depth analysis in order to develop a Risk Response Plan and Corrective Actions. Other risks undergo constant monitoring by the Corporate Risk Management and Conformity Department, and in terms of financial risk by the Market and Credit Risk Management Department, the Treasury Department and the Financial Instruments Control and Reporting Unit.
KGHM’s Management and Supervisory Boards are responsible for the effectiveness of the risk management process. On a quarterly basis, the Management Board receives a Corporate Risk Management Report for the KGHM Polska Miedź Group. Then, the Report is handed over to the Audit Committee of the Company’s Supervisory Board.
Presented below is the organisational structure of risk management in the Company. The breakdown of rights and responsibilities applies best practice principles for Corporate Governance and the generally recognised model of three lines of defense.
A detailed description of risks and mitigation measures is available publicly on-line, at www.kghm.com, in the document titled Consolidated Annual Report (RS) 2014.