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Following the best Corporate Governance practices, in 2017 it was created the Risks Management and Compliance area (this last one already presented in the Company since 2012), with the goal of elaborating the plan and to assure the risks operation of the entire Company, acting as a facilitator and organizing the various agents and initiatives in the management and mitigation of corporate risks, besides acting as an important interlocutor between the Audit Committee and the Management about the risks and internal control themes.
In 2018 it was approved in the Board of Directors meeting (accessorized by the Audit Committee), the Risks Management Policy, that has as goal the establishment of the responsibilities of the risks management of the Company, especially identifying and monitoring the main risks that impact the Company’s strategy and operation and also its subsidiaries, as well as to stablish the control and procedures to monitor, to prevent or minimize impacts.
In 2019, the Company initiated the elaboration procedure of the Map/ Risks Matrix to identify and monitor the main risks that affect the Company’s strategy and operation and its subsidiaries. Based on the Risks Management Policy, there will be implemented the necessary governance to follow the evolution of risks (KRI), besides guaranteeing the reduction of exposure on the levels that will be approved by the Board of Directors.
Since 2016 we have the Audit Committee and the Financial Committee, that together with the Executive Officers, and mainly with the Financial Officer, the main responsible for the financial management, seek to identify, evaluate and protect the Company against eventual financial risks.
To mitigate market risks, the Company has a Financial Policy approved in the Board of Directors meeting that has the vision to assure the permanent accomplishment of financial obligations of the Company, where it is observed the specific criteria to:
(i) measure and maintain a minimum cash availability and financial application ("minimum cash");
(ii) destination of the balance in allowed financial investments;
(iii) hiring of new debts.
In two distinct moments, previously to the establishment of any obligation to the acquisition of lands and to the launch of any project, the Investment Committee and the Launch Committee, respectively, are summoned to approve the condition proposed by the various superintendence of Company. During these meetings, it is examined:
(i) the proposed product;
(ii) the project and the coast of construction;
(iii) the economic viability;
(iv) the commercial and financial terms of the purchase, in case of a land acquisition;
(v) the commercial condition and the sales table, in case of a launch; and
(vi) the land and/or the project situation and its legal and regulatory aspects.