Our risk management is guided by ABNT ISO 31000: 2009 and by the Committee of Sponsoring Organizations of the Treadway Commission – Enterprise Risk Management Framework (COSO-ERM). The process includes identification, analysis, assessment, treatment, monitoring and risk communication.
The main risks identified in our business are:
|STRATEGICS||Inability to recognize factors related to changes in the political and economic scenario||• Long-term strategic plan with evaluation of different scenarios, allowing effective responses to events.
• Market scenario analysisfor decision-making during the strategic planning stage.
|FINANCIAL||Sales to clients with Credit limits that have been exceeded or who are in default.||• Monitoring of accounts receivable andmarket risks stemming from exchange rate and interest rate scenarios.
• Mechanisms that assure the necessary funding guarantees.
|COMPLIANCE||Exposure to citation by authorities stemming from failure to reachenvironmental compliance.||• Monitoring of the applicable environmental requirements andvalidity dates for the environmental licenses.
• Policies aimed at the reuse of solid waste and the reduction in effluents generation.
|OPERATIONAL||Deterioration of operational, efficiency, continuity, distribution conditions as well as meeting deadlines.||• Preventive and predictive maintenance.
• Emergency management to control fires.
• Strict quality control process for end products and after sales technical support.
• Management of employee health and safety.
An internal audit plan contemplating the priority actions for verification of internal controls based on risks is annually submit to the Board of Executive Directors for approval.In 2018, legal compliance audits were conducted across all Corrugated Containerboard Packaging business units and in the People Development area.
The future we want
• To present, in 2019, four reports to the Board of Executive Directors, one of risk assessment and three of risk monitoring.
Marcio Bottin e Alexandre Dinnebier, employees of Paper unit SC – Campina da Alegria