R+D+I activity is subject to risk, which is related, inter alia, to an insufficient amount of work carried out in the area in question, which may result in the creation of a technological gap and, consequently, a decrease in the Group's production effectiveness and efficiency in relation to the market competition.

R+D+I work carries a material risk of failure or inability to achieve the intended project goals. R+D+I activities are also burdened with the risk of lack of availability of appropriate tools, knowledge, skills or experience of employees in the relevant area.

Implementing innovative solutions gives rise to uncertainty with regard to the scale of effects and benefits that the Group might obtain. It should be noted that insufficient funding for the Group's development activities may have a tangible effect on its financial results.

For conducting and coordinating R+D+I processes (including R+D+I projects) and risk management processes, dedicated decision-making bodies supporting the conduct of R+D+I projects have been appointed: Committee for Strategic Innovation Project Assessment (KOSPI), Scientific Council and the Innovation Project Assessment Committee (KOPI). In addition, the Preliminary Project Assessment Committee (WKOP) operates at JSW Innowacje, which prepares initiatives for further verification by KOPI. In certain cases, (key) R+D+I projects are monitored as part of JSW Group’s project and program management methodology by dedicated Steering Committees.