Risk management

Risk management is one the most important internal processes both in PKO Bank Polski SA and in other entities of the PKO Bank Polski SA Group.

Credit risk is defined as a risk of occurrence of losses due to client’s default of payments to the Bank or as a risk of decrease in economic value of amounts due to the Bank as a result of deterioration of client’s ability to repay amounts due to the Bank.

Comprehensive stress-tests are an integral part of the risk management in the PKO Bank Polski SA Group and are complementary for stress-test specific to particular types of risks.

Capital adequacy is the maintenance of a level of own funds by the PKO Bank Polski SA Group which exceeds higher of the: sum of regulatory capital requirements (the so-called Pillar 1) and sum of internal capital requirements (the so-called Pillar 2).