Investor Presentaiton slide image

Investor Presentaiton

eneva < 50 > Risk management GRI 102-11 | 102-15 | 102-29 | 102-30 | 102-31 Our risk management structure includes a set of regulations approved by the Board of Directors which is responsible for defining the internal level of risk taking, establishing the guidelines and responsibilities that must be respected by the entire working staff and ensuring the dissemination of the culture of risk management to which we are exposed, so that it is independent, objective and effective. All business-critical topics are included on the Board of Directors' agenda, including risk assessment where applicable, such as decision- making regarding potential M&A transactions, annual budgeting, marketing strategies, hedging proposals and debt and liquidity management, among others. Our Board of Directors thus analyzes economic, environmental and social topics with a minimum annual frequency and always facing decisions relevant to the business. In this sense, it is the attribution of the Risk Management to expose to the Statutory Audit Committee, the Finance Committee and the Board of Directors the consolidated view of the main business risks of the operations. This evaluation should also contain a diagnosis of the effectiveness of the key controls (prevention and mitigation) established and the execution of action plans that minimize risk. To reduce our exposure to risks, we seek to maintain operations under the periodic maintenance program of equipment, in addition to financial protection mechanisms such as insurance contracting and financial hedge. The Risk Management Policy is the base for management. The policy expresses principles, guidelines and responsibilities to ensure identification, assessment, treatment, monitoring and communication of risks to the BD. The idea, therefore, is to allow a reduction in the degree of uncertainty in achieving the objectives and in preserving the value and perpetuity of the business. In risk assessment, we consider potential impacts on the financial, health and safety dimensions, communities, environment and reputational dimensions. The methodology adopted in risk management is based on internationally accepted standards, such as the Enterprise Risk M Management (COSO-ERM) and ISO 31000 model, which include the concept of three Lines of Defense, being: First line - Represented by the managers in the business and support areas, who must ensure effective risk management within the scope of their direct organizational responsibilities. Second line - Represented by areas such as Health, Safety and Environment (HSE), Information Technology (IT), Risk Management and Governance and Compliance, which support the first line, acting in a consultative way for executive areas, but with independent evaluation and reporting on risk management and our control environment. Third line - Represented by the Internal Audit, which, through the Audit Committee, subsidizes the Board of Directors with independent opinions on the processes and effectiveness of internal controls. GROUPS OF MAIN RISKS Financial risks - Associated with finances, including market impacts, credit and liquidity in financial transactions. Considers the potential risk of financial loss and uncertainty about business (acquisition, disinvestment, loans, etc.). Strategic risks - Arising from the possibility of unsuccessful execution of the strategy, which compromises the achievement of intended returns. Operational risks - Include possibility of losses resulting from external events or failure, deficiency or inadequacy of internal processes, people and technological environment; legal risk, associated with inadequacy or deficiency in contracts entered into, as well as penalties for non-compliance with legal provisions and indemnification for damages to third parties arising from our activities. Regulatory risks - Result from the possibility of changes in the regulations and actions of regulatory bodies, at international or local levels, which can impose increasing competitive pressure and affect our ability to manage business efficiently. We also have means for managing catastrophic and tail risks, according to the Crisis Management Manual, and carry out periodic simulations, involving our Crisis Commission and other key professionals of the company. sustainability report 2021 Intellectual and organizational capital
View entire presentation