Risk of random events

Management of negative random incidents risk and shaping insurance security

Random incident risk is understood as the probability of random incident occurrence that may consequently generate losses in Company's assets. The source of these incidents may be environmental or social.

In order to eliminate the threats and minimise material losses connected with the occurrence of risk, KGHM Polska Miedź S.A. is actively involved in activities encompassing the entirety of commercial insurance, both property and individual insurance.

KGHM Polska Miedź S.A. is a company with high degree insurance awareness. In a steady and systematic way, the Company engages in a variety of activities in the course of its business enabling the identification, evaluation and management of risks associated with random incidents. This is of key importance in assuring long-term safety of the Company’s operations.

KGHM Polska Miedź S.A. Group has a diversified structure, both organisational and territorial. Consequently, the process of managing random incidents risk has been appropriately cascaded to various organisational levels enabling an effective and efficient mitigation of risk.

The Company’s Central Office, together with the Divisions and Subsidiaries of the Capital Group, is engaged in procedural activities related to the management of random incidents risk, including among others:

  • Identification of risks associated with negative random incidents
  • Description and evaluation of risk – reflecting the possible negative impact and the probability of its occurrence
  • Risk-related activities – understood as the selection and implementation of resources aimed at controlling/limiting risk or its transfer (insurance)
  • Registration of property, financial and life insurance policies
  • Registration of damage

Realisation of the above actions has been described in detail by the Management Board of the Company in the "Principles for the identification of random incidents risk and the shaping of insurance security at KGHM Polska Miedź S.A. Group”.