Policies and Internal Regulations

Risk Management

Lion Capital applies the Procedure of significant risks management and the Work Procedures on their identification, evaluation, measurement and control, documents periodically reviewed and approved by the Company’s Board of Directors.

The Board of Directors approves the appetite and the limits of risk tolerance of Lion Capital, as well as the procedure for identifying, assessing, monitoring, managing, and reporting the significant risks to which the Company is or may be exposed. The Board of Directors, the executive / senior management, as the case may be, shall ensure that the approved significant risk policy and procedures are applied at Lion Capital level, and appropriate tools, techniques and mechanisms are used in their application.

The assessment of the efficiency of the risk management system adopted by Lion Capital is performed by the Board of Directors at least every six months based on the risk reports, depending on the policies, procedures and controls performed.

The permanent risk management function has a main role in defining the risk policy, in monitoring and measuring the risks, ensuring the permanent compliance of the risk level with the risk profile of the Company decided by the Board of Directors. The person in charge of the administration shall have access to all relevant information and shall provide the senior management with up-to-date information on which to take prompt remedial action, if necessary.

The performance of the risk management function is periodically reviewed by the internal and external audit function.

The management structure of Lion Capital, through the Board of Directors and the Audit Committee, periodically approves and reviews both the risk strategy and the significant risk management policy.

The significant risk management strategy is based on the risk management objectives and follows three parameters: risk appetite, risk profile and risk tolerance.

The strategy of the Board of Directors of the Company is to embrace a medium-level risk appetite.

This objective takes into account the fact that, in conditions of economic difficulties, the Company will objectively accept a higher level of risk coming from the existing exposures of the Company’s portfolio but will take all the necessary measures to reduce the risk appetite for new (future) exposures.


Assessment of the Risk Management and the Internal Control System for 2022

(published on October 17, 2023  • 11:15)

Read the document ›