We define risk as the threat or possibility that an action or event will adversely or beneficially affect our ability to achieve our strategic objectives. We understand risk management as a process that encourages well-considered and responsible risk taking as a legitimate response to opportunity and uncertainty and enables us to achieve better results for the Group through improved decision-making and targeted risk mitigation and control.

The established risk management system is used to verify whether the second line of defence effectively covers all major risks, and to identify measure and manage financial, insurance and operational risks. Simultaneously, the Triglav Group:

• defines its risk appetite and monitors risk exposure;
• implements an integrated risk management system in compliance with Solvency II requirements; and
• creates a favourable environment for the development of risk management culture in line with the Company's business strategy.