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.)

To effectively manage the financial risks, the Parent implemented the ‘Policy of Financial Risk Management at PGNiG S.A.’ (the ‘Policy’), which defines the distribution of functions and responsibilities between the Company’s organisational units in the process of managing and monitoring the financial risks. The body responsible for ensuring compliance with the Policy and its periodic updates is the Financial Risk Committee, which proposes risk management procedures, monitors the Policy implementation and revises the Policy as needed.