Sustainability Report 2021 Vivara

60 SUSTAINABILITY REPORT 2021 VIVARA Risk 102-11 | 102-15 management We update our risk matrix annual- ly, mainly focusing on strategic risks, through a more complete and struc- tured mapping. In 2021, we received support from an external consulting firm, which updated the document con- sidering the main concerns of Vivara's top management and the company's strategic goals. Next, we started to re- view the action plan in order to define the controls to mitigate the risks, in a cyclical process, according to the tar- gets we have set for the company. The ESG risks were included among our strategic risks, as part of the advances made in 2021. Our risk management policy intends to establish guidelines, controls, proce- dures, and responsibilities related to the identification, assessment, treatment, and monitoring of the risks related to our activities. The process, integrated to the targets and goals of the busi- ness, requires the active participation of all employees, the adoption of best practices, and the dissemination of the risk mitigation culture and knowledge at all levels. Risk management is the responsibili- ty of the Board of Directors; the Audit, Finance and Risks Committee; the In- ternal Audit, Compliance and Internal Controls Area; and the Business areas, which have distinct duties and must act together in an integrated manner. The Audit, Finance and Risks Commit- tee evaluates and monitors Vivara's exposure to risks that could affect its sustainability, and also assesses the effectiveness of the risk management model, suggesting solutions for en- hancement of internal processes. 102- 33 | 102-34 | 207-2 $ ° Strategic risks: those that can prevent or affect the implemen- tation of the Company's strategic decisions for its business goals. Operating risks: those that involve operation, information sys- tems, processes, internal controls, customers, revenues and other activities that may result in financial losses, damage to reputation and image, reduction of the Company's profit, among other factors. Financial risks: those that arise from unexpected effects on the economic or political scenario, and from market trends, which could have an effect on consumers' behavior, interest rates, inflation, financial investments, among other factors. Financial risks also include credit risks caused by the failure of a financial instrument's customer or counterparty to com- ply with their contractual obligations, which may arise mainly from receivables originated by retail customers, from invest- ments and liquidity risks. الجمال • ⚫ Compliance risks: those caused by non-compliance with laws, rules, regulations and internal policies on ethics and conduct, or due to unresolved or future legal proceedings that may lead to fi- nancial loss and damage to the Company's reputation and image. SUSTAINABILITY REPORT 2021 VIVARA 61

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