Descriptions of the significant risks related to the entity’s activity

In reference to the risk related to client relations (ensuring safety fo client funds, legal aspects of product and service designs, selection of products to match client needs and possibilities, conveying the appropriate information to clients, timely handling of complaints, etc.), the Bank uses diverse and advanced methods to protect client funds, monitors all the regulations and opinions expressed by UOKiK (Office of Competition and Consumer Protection) and other authorities and it is focused on delivering the best products and services to its clients, as the Bank’s top positions in various rankings amply attest. Minimizing the risks related to business partners entails devising objective criteria for selecting suppliers and fair payment and contractual terms accompanied by ethics in collaboration, as reflected by our internal regulations. In terms of employee-related risks the Bank minimizes the risk of high employee turnover by embracing the pertinent policies (including HR, compensation and diversity) and offering high working standards, as confirmed by receipt of the status of Sound Employer of the Year 2019. The risk related to the issue of failing to respect human rights and combat corruption refers to the possibility of human rights violations and cases of corruption occurring in the organization. This entails risk of criminal, administrative and financial liability and loss of reputation. The Bank’s Group prevents this risk by observing the “Diversity Policy” and obligating its employees and business partners to adhere to the Bank Millennium Group’s Code of Ethics in which these issues are regulated and by offering the ability to report violations anonymously in these areas. The risk pertaining to the natural environmental impact chiefly involves the negative impact of the Group on the natural environment, both through its own operating activity and also by financing projects. The Group prevents this risk by submitting to legal regulations, monitoring its own environmental impact and implementing environmentally-friendly actions and observing the “Environmental Policy of the Bank Millennium Group” and the project financing rules.

A detailed description of the management of the foregoing risks has been set forth in the various sections of the report pertaining to relations with clients, employees, business partners and communities and to respecting human rights, preventing corruption and managing the natural environmental impact.