Enterprise Risk Management Policy in the KGHM Polska Miedź S.A. Capital Group

Abstract

Under the current market conditions, risk is inherent in enterprise management. A well-functioning risk management policy is an added value for an enterprise. It allows its managers to focus on developing the company’s development strategy, its value and com-pe - titiveness. They can effectively manage uncertainty and the related opportunities and risks, increasing the company’s potential to build value. Risk management is aimed control-ling and handling risks across the organisation. Understanding the risks faced by the enter-prise leads to better strategic decisions, and thus better allocation of resources. Effective risk management also involves correctly predicting the risk factors for different time hori-zons, and the ability to consider different scenarios. Consequently, there is a need to collect highly detailed information on the activities of the whole enterprise. The aim of this paper is to analyse selected aspects of enterprise risk management at the level of a capital group using the example of Grupa KGHM Polska Miedź S.A. as a glob-al organisation.