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Risk management is an integral element of our organisational culture. It entails setting out responsibility for results, evaluating outcomes and promoting effective measures at all levels of the organisation.
Enterprise risk management is a management tool supporting the achievement of strategic and operating objectives and providing information on the Company’s risks and the effectiveness of risk management.
The aim of enterprise risk management is identifying potential events and risks that may have an impact on the organisation, maintaining risks within the set boundaries and rationally implementing business objectives. This is a continuous process, subject to modifications in response to a changing economic environment, changes in the Company’s operations and changes concerning the impact of specific risks on the Company’s business objectives. Enterprise risk management encompasses activities at the level of JSW, JSW Group and business processes.
The Group uses systems such as ERM in order to strengthen its management system and increase transparency in risk management. Having an ERM system contributes to enhancing risk management, reducing the cost of risk and equity for the entire Group.
In accordance with „Good practices for WSE-listed companies” („Good Practices”), „The supervisory board should once a year prepare and submit to the ordinary general meeting a concise assessment of the company’s situation, taking into account an assessment of the company’s internal control system and significant risk management system.” In accordance with art. 86 of the Act of 7 May 2009 on statutory auditors and their self-governance, entities authorised to audit financial statements and on public oversight (as amended), the (Supervisory Board) Audit Committee’s tasks should especially include the monitoring of risk management system effectiveness.
JSW’s Management Board and Supervisory Board place emphasis on the completeness and reliability of information pertaining to the effectiveness of enterprise risk management, having in consequence introduced an enterprise risk management system. The system rules are defined in the Group’s enterprise risk management policy and procedure for enterprise risk management.
Implementing this system requires a systematic and transparent approach to risk management. The rules contained in the policy and the associated procedure are mandatory for all concerned JSW Group entities.