6.6 Significant events in risk management in 2013

Organizational changes

The scope of organizational changes in PZU and PZU Życie included establishment of a new, separate Compliance Unit (“CU” – July 2013) in charge of compliance risk, which had previously been managed by the RO.

Revision of the Risk Management Strategy and individual risk management policies

In 2013, PZU and PZU Życie revised the following documents regulating risk management: the Risk Management Strategy, Insurance Risk Management Policy, Market Risk Management Policy, Credit and Concentration Risk Management Policy, Operational Risk Management Policy as well as technical methodologies which supplement the aforementioned documents.

Implementation of the risk map into the risk management process

The risk map is a tool used in the risk management process, in the form of a coordinate system. Each material risk emerging at PZU or PZU Życie is included in the system, based on the value of coordinates defining the frequency of an event on the vertical axis and the size of the risk on the horizontal axis.

Solvency II

IN 2012, PZU launched a strategic project in respect of adaptation of PZU to the requirements of Solvency II; the project has been progressing in accordance with the original schedule. PZU and PZU Życie cooperate with the Office of Financial Supervision Authority on preparation for implementation of the Directive. In particular, they take part in all the quantitative tests.