Investor Presentaiton
24
GOVERNANCE, RISKS AND COMPLIANCE
RISK
MANAGEMENT
GRI 102-11
2021 INTEGRATED ANNUAL REPORT
We adopt a formal risk
management policy, reviewed
by the Audit Committee and
approved by the Statutory
Executive Office. The purpose
is to support the Company in
meeting its strategic goals, and
to set definitions, guidelines,
evaluation criteria, so as to
ensure that the main business
risks are identified, assessed
and minimized to an acceptable
level. Thus, we contribute to
operational losses reduction,
efficiency gains and the
management and continuity
of the business in adverse
scenarios. We also have a
structure of internal controls
that is continuously reviewed
and a system to assist in this
management.
The risk management policy
classifies the main risks as:
strategic, operational, reporting,
compliance, cyber, data
protection, market, and social
and environmental risks. In this
sense, based on the quantitative
Salvador/BA Unit, located
in an Environmental Protection Area
and qualitative risk assessment
and measurement, protection is
sought for those representing a
potential to adversely affect the
business results.
We adopt as a benchmark the
guidelines of the main entities
in these areas, such as COSO
(Committee of Sponsoring
Organizations of the Treadway
Commission), IIA (Institute of
Internal Auditors) and IBGC
(Brazilian Corporate Governance
Institute). In addition to these
entities, we assess the laws,
rules and regulations in force in
the country on a regular basis,
keeping our risks continuously
reviewed and adherent to
the market trends and the
Company's strategies. The main
risks identified are detailed in
the Reference Form, filed with
the Brazilian Securities and
Exchange Commission (CVM),
available on our website.
BUSINESS
CONTINUITY
In 2021, we started building
our business continuity plan.
The first step was the design
of a BIA (Business Impact
Analysis) process, which consists
of mapping the most critical
dependencies and risks for M.
Dias Branco that could disrupt
the operation (people, inputs,
systems, among others).
This study aimed to assess
the governance maturity,
considering the key elements
for the Business Continuity
Management Program (GCN),
according to the best market
practices. An assessment of the
risks and crisis scenarios was
also carried out for the critical
processes of the covered units, in
addition to the assessment of the
current response capacity and
proposal of recommendations.
The work will continue to evolve
in the coming years.
CLIMATE RISKS
We have evolved in our
commitment to the ESG theme,
with active participation of the
risk area in the sustainability
Working Groups (WGs), helping
to assess climate risks and
opportunities jointly with other
areas. Among the deliveries, the
following stand out:
Mapping of the main climate
risks, whereby the impact and
probability of each risk factor
were measured;
Identification of mitigating
controls related to the theme;
Addressing the Company's
opportunities and actions.
This work was used as input for
the evolution of the Company's
score in CDP (Carbon Disclosure
Project or Climate Resilience
Index) and ISE (Corporate
Sustainability Index), in addition
to confirming the achievement
of the goals of the strategic
agenda, signed
by 2030.
UPDATE OF THE
HEDGE AND
GOVERNANCE
POLICY
As an evolution in the theme of
hedging exposures to the risks
of fluctuations in the prices of
commodities and currency, we
have updated the Hedge Policy,
adapting the methodology
to meet the specifications of
operations in foreign currencies,
in addition to implementing
controls to ensure that derivative
agreements are exclusively for
hedging purposes.
UNDERSTANDING THE ORIGIN OF RISKS
New Processes Changes in Systems Failures in Controls
Existing Mergers and Acquisitions Exogenous Factors
Inventory and Risk
Assessment
Risk Identification
Qualitative Risk
Assessment
Quantitative Risk
Assessment
Responses to Risks
Establishment of Controls
Monitoring and
Reporting
Identification of
Controls
Controls Design
Testing
Control Operation
Testing
Storage and wheat mill in Bento Gonçalves/RS
Action plans
Matrix Updating
and ReportingView entire presentation