Financial risk management rules
The Group’s activities are subject to the following categories of risk associated with financial instruments:
- credit risk,
- financial liquidity risk,
- commodity risk,
- currency risk,
- interest rate risk.
This note contains information on the Group’s exposure to each of the aforementioned types of risk and describes the objectives and policies with regard to managing risk and capital.
The Parent’s Management Board is responsible for setting out the risk management framework and rules.
Managing financial risk at the Group is based on a formalised and integrated risk management process, described in dedicated risk management policies, procedures and methodologies.
Risk management is designed as a continuous process. The Group continuously analyses risk in terms of external environmental impact and changes in its structures and activities. Based on this, it takes actions that are intended to limit risk or transfer it outside of the Group.
The Group has also analysed risks related to climate changes and presented more extensive information on this in the Management Board report on the activity of ENEA S.A. and the ENEA Group in 2021, including in the Statement on non-financial information, which is a separate part of the report.
The Group has considered the impact of climate factors on its financial statements and taken account of these factors in, among other things, impairment tests on non-financial assets, in an analysis of the value of jointly controlled entities and in calculating the provisions for other liabilities and other charges.