► In the assets and liabilities management of long-term business funds and assets backing liabilities, in reinsurance operations, and in all funding operations within the scope of capital management, Triglav is exposed to the following financial risks:

• equity risk and interest rate risk,
• credit risk, and
• liquidity risk.

Financial risks are managed on the basis of clearly defined competences and powers, which include exposure limits and reporting processes at the level of the Group and its members (risk-related decision-making competences and powers are shown in the figure Risk Management chart).

The investment policies of Zavarovalnica Triglav's individual long-term business funds and assets backing liabilities are structured so as to account for the nature and characteristics of the Company, to optimise asset spread and to maximise return.