7.5 Financial risk management

in PLN millions, unless otherwise stated

In the course of its business activities the Group is exposed to the following main financial risks:

• market risks:
  • commodity risk,
  • risk of changes in foreign exchange rates,
  • risk of changes in interest rates,
  • price risk related to investments in shares of listed companies (Note 7.3),

• credit risk, and
• liquidity risk (the process of financial liquidity management is described in Note 8).

The Group identifies and measures financial risk on an ongoing basis, and also takes actions aimed at minimising its impact on the financial position.

The Parent Entity manages identified financial risk factors in a conscious and responsible manner, using the adopted Market Risk Management Policy, the Financial Liquidity Management Policy and the Credit Risk Management Policy. The process of financial risk management in the Parent Entity is supported by the work of the Market Risk Committee, the Financial Liquidity Committee and the Credit Risk Committee.