7.3.2. MARKET RISK
share:
| Market risk is defined as the risk of the Group’s financial results or economic value being adversely affected by changes in the financial and commodity markets. |
In line with the adopted policy, the purpose of the market risk management process in place at the Group is to:
- Reduce the volatility of cash flows related to the Group’s operations to acceptable levels in the short- and medium term
- Build company value in the long term.
Considering potential impacts on its financial results, the Group has identified the following market risks:
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Market risk
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Approach to risk management
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Impact on financial results |
Natural gas and oil product prices
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The Group manages the risk by purchasing derivatives to hedge natural gas prices.
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EUR/PLN, USD/PLN and NOK/PLN exchange rates
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[see above] The risk is mainly related to trade payables. The Group hedges the risk by entering into derivative contracts.
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Interest rates
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The Group hedges the risk by purchasing derivatives.
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Other commodity prices
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The risk considered immaterial.
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