Frasle Mobility's New Positioning and Randoncorp Investments slide image

Frasle Mobility's New Positioning and Randoncorp Investments

Risk classification and handling With the purpose of more efficiently identifying, assessing and classifying each risk inherent to our operations, we maintain a corporate risk map that is updated biannually. In 2022, we identified 44 corporate risks, which were classified and prioritized for treatment according to the level of impact and probability in four categories in accordance with our Risk Management Policy: strategic, financial, operational or regulatory. For each risk identified and assessed in the corporate risk map, we define a risk treatment and response strategy, through a control activity or action plan, executed by the risk owners and monitored by the Risk Management and Compliance area. Risk treatment should comply with the following guidelines: Processo de Gestão Integrada de Riscos IDENTIFICATION Every year, we survey the risks of our processes, to ensure that the risk map is updated. In 2022, we identified 44 corporate risks. ASSESSMENT AND CLASSIFICATION Identified risks are classified and prioritized for handling according to the level of criticality (impact versus likelihood) into four categories in accordance with our Risk Management Policy described below. HANDLING For each identified and assessed risk, a response strategy is defined, described in action plans coordinated by the Risk Management and Compliance department. The strategy must prioritize one of the four guidelines set out below from our Risk Management Policy: Strategic Risk Associated to the strategic decisions of the organization to achieve its business objectives and/ or derived from its lack of capacity or ability of the company to protect itself or adapt to changes in the business environment. Operational Risk Associated to the possibility of facing losses (in production, assets, clients, revenues) resulting from flaws, deficiencies or inadequacy of internal processes, staff and systems, as well as external events such as natural disasters, frauds, labor strikes and terrorist acts. Financial Risk Associated to market, credit and liquidity risks: >> Market and Government Risks: financial losses due to the alteration of interest and exchange rates, in share prices, in commodity prices, and in the legislation in force. >> Credit Risks: possibilidade de perdas pelo não pagamento de crédito concedido por financiamento e emissões de títulos. >> Liquidity Risks: loss of capital, of the financial value of assets. Regulatory Risk Associated to legal or regulatory sanctions, financial or reputational loss the company might suffer as a result of a failure to fulfill the enforcement of laws, agreements, regulations, code of conduct and/or of internal policies. Avoid Discontinuing activities that generate risk. Accept The impact/probability of the event and of continue operating with the control. Mitigate Creating controls or initiatives that minimize the potential exposure to risk. Transfer Reduce the likelihood or impact of transferring or sharing with third parties. ETHICAL AND RESPONSIBLE MANAGEMENT 48
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