Risk management objectives and principles

The key objective of risk management in the Group is to ensure security of funds entrusted by its clients and effectiveness of decisions made in order to maximize income generated over a longer perspective, with an acceptable level of accompanying risks.

Risk management in the Group is an integrated process based on supervisory requirements and internal regulations approved by the Supervisory and Management Board of the Bank. Internal regulations in force are reviewed on a periodic basis, taking into account the developments in the Group’s external and internal environment. The Bank is the entity that integrates the risk management approach within the Group.

The Group has adopted a three-level system of organizing internal risk management regulations.

The general risk management framework has been determined in the following documents adopted by the Supervisory Board:

  • General Risk Management Policy of Bank Pocztowy S.A.;
  • General Capital Management Policy of Bank Pocztowy S.A.;
  • Growth Strategy of Bank Pocztowy S.A. for 2014-2017;
  • Financial Plan of Bank Pocztowy S.A. for 2014;
  • Risk Management Strategy of Bank Pocztowy S.A. for 2014.

Principles of managing each risk type, approved by the Management Board and delegating duties to individual Departments, Offices and Subsidiaries, provide necessary details to the above documents. Based thereon, detailed operating procedures with descriptions of individual activities (including controls) to be performed by the Departments, Teams and Positions, have been developed.

The risk management system includes:

  • The Supervisory Board;
  • The Management Board;
  • Risk management committees established by the Management Board of the Bank pursuant to internal regulations in force;
  • Organizational units managing individual risk types;
  • Control units (including the internal audit and compliance unit);
  • Other organizational units.

The target risk structure at the level of the Bank and the Capital Group depends on the defined risk appetite. The risk appetite determines the readiness of the Bank and the Group to assume a specific risk within a determined time horizon and it is subject to acceptance by the Management Board. The risk appetite is a substantial element of the Bank’s Strategy and Financial Plan approved by the Supervisory Board.

Identification and measurement of each risk type result in determining those which are material for the Group, classifying them from the permanent materiality assessment perspective (permanently and temporarily material risks) and for the purpose of capital coverage.

The following risk types are classified as permanently material for the Bank:

  • Credit risk;
  • Liquidity risk;
  • Interest rate risk related to the Banking Book;
  • Operational risk.

Additionally, the Bank identifies the following material risk types:

  • Compliance risk;
  • Strategic risk;
  • Business cycle risk;
  • Reputation risk;
  • Outsourcing risk;
  • Pillar 2 credit risk;
  • Residual risk;
  • Concentration risk;
  • Price risk related to debt instruments in the Trading Book.


Annual Report 2014 - Bank Pocztowy