7.3. Financial risk management policies

In its business activities, the Group is exposed in particular to the following types of financial risk:

• Credit risk (Note 7.3.1.)
• Market risk, including:
  • Commodity price risk (Note 7.3.2.1.)
  • Currency risk (Note 7.3.2.2.)
  • Interest rate risk (Note 7.3.2.3.)
• Liquidity risk (Note 7.3.3.)

In order to manage financial risk effectively, the Parent operates ‘Policy of Financial Risk Management at PGNiG S.A.’, (the „Policy”), which defines the division of competencies and tasks among the Company’s organisational units in the process of financial risk management and control. The body responsible for ensuring compliance with the Policy and its periodic updates is the Risk Committee, which proposes risk management procedures, monitors the Policy implementation and revises the Policy as needed.