Implementation costs of hedging strategies


The costs of hedging strategies depend on the materiality of the risk and the potential benefits derived from hedging.

Whenever possible, we use the ALARP (As Low As Reasonably Practicable) principle to reduce risk to a level considered economically acceptable. 

Furthermore, when preparing risk analyses or action plans, potential costs are among the factors considered in making the final decision on actions necessary to be taken. This approach enables the LOTOS Group to deploy the financial resources required for risk management in the most efficient manner possible.