Enea Group in each segment of the conducted operations is exposed to risks. Their materialisation may significantly and adversely affect the continuity of operations of particular Group Companies, their financial standing and ability to realise the set strategic goals.
The awareness of these risks requires maintenance, use and continuous improvement of the formalised and integrated risk management system (ERM). Its frames are specified by the uniform Corporate Risk Management Policy in force in Enea Group. ERM system in Enea Group is based on the comprehensive coverage of the risk management objective, specification of detailed rules of identification and risk assessment. On this basis the key corporate risks are selected and monitoring takes place of the exposure to these risks and preparation and monitoring of the mitigation plans. In the case of some corporate risks, such as credit, loss of liquidity, interest rate risks and commodity risks, a formalised approach to risk management takes the form of dedicated Policies and Procedures.
Adopted rules of risk management are set based on the highest management standards and are compliant with best market practices within this area.
In 2016, the risk management system was subject to further development and process optimisation, e.g. through works related to the integration with LW Bogdanka and relating to the implementation of IT systems.
Management model
The concept of the risk management organisation in Enea Group was based on the coordinated model. The key strategy of its functioning is coordination of the risk management processes in the Group by Enea SA.
Key features of the coordinated model:
- the Group Companies manage risks based on homogeneous standards specified in Policies and Procedures
- the Companies manage risks operationally within allocated limits and subject to the rules approved by Enea Group's Risk Committee
- individual Companies report to the Parent Company within realised activities as regards risk management
- Enea SA is the process coordinator in the Group
- Front-, Middle- and Back Office organisational division is in force in the Companies
Risk management process
The risk management process in Enea Group is a multi-stage process, engaging all the significant organisational units of the Group Companies. The process model is compliant with the best market practice, and also standards being in force within this scope.
Documentation regulating the risk management process in Enea Group
The whole principles of the risk management system operation in Enea Group are described in the concise set of documents constituting the by-laws comprising relevant Policies and Procedures.
Policies are constitutive documents setting the frames of performed actions, indicating the scopes of participants' liability, and containing fundamental guidelines for the management model. Procedures describe the process of these actions and methods applied within performed tests, measurements, etc.
Enea Group's Risk Committee
The core body in the risk management process in Enea Group is the Risk Committee. The Committee is an interdisciplinary body, grouping representatives of key business areas of Enea Group, representing all its core Companies in the committee.
The Risk Committee's composition and its key prerogatives are presented below.
Risk Committee's composition:
- President of the Management Board of Enea - Chairman
- Vice-President of the Management Board for Financial Affairs of Enea - Vice-Chairman
- Vice-President of the Management Board for Financial and Economic Affairs of Enea Wytwarzanie
- Member of the Management Board for Financial and Economic Affairs of Enea Operator
- President of the Management Board of Enea Centrum
- President of the Management Board of Enea Trading
- Enea's Risk Management Department Director
- Enea's Operational Management Department Director
- Enea’s Control and Audit Office Manager
- Submitting recommendations to Enea’s Management Board as regards approval of policies regulating the processes of managing risks, continuity of operations, insurance and compliance and update changed within this area
- Accepting and analysis of the information from Specialised Units from the area of risk, continuity of operations and insurance management
- Issuing opinions on reports within the implementation of the Compliance Policy which are presented to Enea’s Management Board for approval
- Accepting reports on the current implementation of the Compliance Policy and formulating recommendations relating to the implementation of the Compliance Policy
- Issuing valid interpretations of the provisions of the Compliance Policy
- Making decisions on the following, in particular:
a) approving operating documentation regulating the risk, continuity of operations management process, with acceptance of update changes (risk limits, strategies, procedures, methods, tools, instructions, guidelines, etc.)
b) resulting from the operating documentation regulating the risk, continuity of operations management process and granting permissions to divergences from the rules described in the operating documentation regulating these processes
c) approving the map of corporate risks, list of core risks with owners of these risks
d) approving the methods of risk mitigation, including in particular risk management plans
