Grupa LOTOS operates a Financial Risk Management Office responsible for coordinating and supervising steps taken to ensure that decisions made by LOTOS Group companies are optimised in terms of financial risks. The aim of these efforts is to ensure that the financial risk management policy is up-to-date, coherent and consistent with Grupa LOTOS’s strategic objectives, and to provide for the efficiency, effectiveness and operational security of the financial risk management process.
The Company has also established a Price Risk and Trading Committee, whose tasks include supervision and coordination of price risk management at Grupa LOTOS in relation to prices of crude oil, petroleum products (including biofuels and biocomponents), natural gas and other raw materials, as well as prices of carbon emission allowances and electricity.
In order to ensure that financial risks are effectively managed and to minimise the risk of error, all data used to support the assessment process are thoroughly verified, and the decisions made are based on in-depth analyses in accordance with risk management policy, limit structure and operating procedures. Financial risk management policies, instruments and the impact of key risk factors on individual items of our financial results are presented in the consolidated financial statements. (see Notes to the consolidated financial statements)