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In all phases of its business, including the prospection and development of new products and assets.
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At all levels of the organization, including linking results related to relevant risks to financial incentives for employees and Senior Management.
Governance
The corporate risk governance structure of ENGIE Brasil Energia follows the model of the three lines of the IIA – The Institute of Internal Auditors:
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First line: Function managers are the owners of the risks related to their activities and are responsible for managing them.
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Second line: Governance, Risks, and Controls Function, directly linked to the CEO, conducts the cross-functional monitoring of business risks, establishes guidelines for internal controls, and oversees the control environment.
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Third line: Independent Internal Audit, hierarchically linked to the Board of Directors, under the supervision of the Statutory Audit Committee, attests to the effectiveness of risk management and compliance processes.
Risk management is supervised by the Statutory Audit Committee of ENGIE Brasil Energia, which advises the Board of Directors. The Committee is composed of three members, two of whom are independent members of the Board of Directors of ENGIE Brasil Energia.
Process
The identification and classification of risks, in terms of probability and impact, are carried out through the Business Risks and Opportunities Matrix. The Matrix presents the Company’s degree of exposure and the mitigation actions for each risk, aligned with the risk appetite defined by the Management. The matrix review process is conducted twice a year by the Governance, Risks, and Controls Management and includes contributions from the Enterprise Risk Management Forum, composed of the Company’s Managers. Once consolidated, the Matrix is approved by the Executive Board and ratified by the Statutory Audit Committee and the Board of Directors.
Risk Management Training
ENGIE Brasil Energia promotes the culture of risk management by offering employees training focused on risk management principles and on topics that are of greater attention in this area, such as health, safety, and climate change. This principle is taken up to the level of Senior Management: the Board of Directors receives regular education in risk management and in topics that constitute relevant risks and opportunities. In 2022 and 2023, the training focused on climate change and carbon market. In 2024, the training will take place in the second half of the year and will include a panel of relevant market risks.
Read the Business Risk and Opportunity Management Policy to learn more about the topic.