Strategic risk

Strategic risk is the probability or possibility that an event will adversely or beneficially affect the Triglav Group's ability to achieve its strategic objectives and thus the Group's value. Achieving strategic goals and managing strategic risks is a responsibility of all three lines of defence against risk. Strategic risk management is directly and most actively managed by: the Management Board of Zavarovalnica Triglav, the Subsidiary Governance Committee, the Project Steering Committee, the Life Insurance Product Forum, the Non-life Insurance Product Forum, the Risk Management Committee and the Assets and Liabilities Committee.

Strategic risks are addressed upon their creation, i.e. during the strategic planning process. The strategy implementation process is monitored with internal controls, while competences and responsibilities of the above-mentioned bodies in managing strategic risk are clearly defined. A clear organisational structure of functions and committees provides for an effective strategic risk control as well as the achievement of short-, mid- and long-term goals. At Group level, special attention is paid to the synergies between individual Group members' strategies, their mutual harmonisation as well as compliance with the strategy of the Triglav Group.

Continuous training for employees as well as the application of state-of-the-art models, tools and good business practices enable the Group to effectively manage strategic risks.

Sources of strategic risks


The Strategy of the Triglav Group is devised in a clear manner with precisely defined goals, tools and implementation processes. The same is true for the strategies of other insurance companies, which have been harmonised with the strategy of the Group. All strategies follows trends in the industry, legislative and legal matters as well as the micro- and macro-environment. They enable fast and efficient adaptation to the changes in the environment. Good business results achieved despite the economic crisis and effects of unpredictable weather events show that the implementation of the strategy has been successful and efficient.

Business processes

Internal controls set up to monitor operational risks (see Section Operational risks) enable employees to adopt and implement more appropriate and correct decisions and enhance the Group's general ability to adapt to the changes in the environment.

Assets and liabilities

Due to the nature of their operations, members of the Triglav Group employ different assets and liabilities management systems. Nevertheless, all systems are designed to allow optimum and efficient management of assets and liabilities. In this regard, synergies and information and expertise sharing are used to facilitate and improve the Group's operations. The Group effectively manages assets risks by active monitoring of its liabilities, premium inflow, real property situation, investments and developments in financial and all other markets, which positively affects its financial results.


Risk type



Buyer risk


The Company is affected by changes in consumer behaviour due to the influence of the economic situation on their purchasing power.

Supplier risk


The procurement process provides for the transparency of procurement and suppliers. Triglav is focused not only on procurement-related cost effectiveness, but also on transparency and due implementation of the procurement processes.

Competition risk


Triglav is successfully facing intensive competition, as proven by its market share.

Product risk


By designing new and upgrading existing products and making a portfolio selection in line with its strategic orientation, the Company increases the appeal and quality of its products and lowers the amount of claims paid.

Regulatory risk


For a long period of time, Zavarovalnica Triglav has been preparing for the Solvency II Directive and phase 2 of the IFRS 4.

Risk Management is discussed in greater detail in Section 4 of the Triglav Group's Accounting Report.


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