Appetite for risk

The appetite for risk, risk profile and risk tolerance limits reflect the strategic plans of the PZU Group, thereby ensuring adequacy and effectiveness of the risk management system and preventing acceptance of risk levels which could jeopardize the financial stability of the PZU Group.

The risk management strategy, which was updated by the Management Boards in 2013, defines the maximum/minimum parameters of the appetite for risk, risk profile and tolerance limits that lead to active and informed changes in the level of risk accepted by the PZU Group companies.

  • appetite for risk – appetite for risk was defined as the level of risk which the PZU Group is prepared to accept while pursuing its business objectives. The level of the appetite for risk is defined as the minimum capital requirement coverage ratio;
  • risk profile – these are quantitative limits which define the appetite for risk of the PZU Group more precisely;
  • tolerance limits – these are additional risk limits introduced to mitigate potential risks.