The Management Board of mBank takes measures to ensure that the Group manages all material risks arising from the implementation of the adopted strategy of mBank Group, in particular, through approving strategies and processes for managing material risks in the Group.
The following risks were recognized as material in the Group’s operations as of December 31, 2020: credit risk, risk of foreign currency lending (it is associated with actual or potential threat to the bank’s results and capital related to foreign currency loans to unsecured borrowers), operational risk, market risk, business risk (including strategic risk), liquidity risk, reputation risk, model risk, capital risk (including risk of excessive leverage) and tax risk.
The following sections present the rules of monitoring credit, market, liquidity and operational risk in mBank Group.