Corporate Risk Management

 

The Financial and Investor Relations Office has a structure dedicated to Corporate Risk Management, strengthening the governance system of Neoenergia Group.

 

The hallmark of corporate risk management is Neoenergia’s corporate risk management policy approved by the Board of Directors, which defines the basic principles and guidelines for risk management, ensuring alignment with the Group’s intended risk profile.

 

The Board of Directors, together with the risk management area, us committed to developing our entire capability so that the material risks in all activities and businesses of the Group are identified, quantified, managed and controlled within a continuous enhancement process.

Main corporate risk management guidelines:

  • Risk management as a strategic tool for supporting decision making
  • To periodically measure and adapt the risk profile to the level recommended by the Board of Directors, using risk mitigation strategies whenever possible
  • To protect the Group’s results, image and reputation, respecting its Code of Ethics
  • To defend the interests of the shareholders, customers and other stakeholders
  • To ensure our business and operations are carried out with transparency, stability, financial soundness and in a sustainable manner, with due regard for the risk indicators and limits.

 

Basic principles of corporate risk management:

  • To incorporate the risk-opportunity approach into Group management
  • To ensure independence between the areas ‘owning’ the risks and those responsible for their analysis, control and supervision
  • To ensure proper use of the instruments for hedging the risks and registering them according to the applicable rules or regulations.
  • To provide transparent information about the risks of Neoenergia Group and how the control systems function, maintaining proper communication-friendly channels.
  • To ensure compliance with the corporate governance rules established by the company through a corporate governance system, permanently updating and enhancing this system with the practices in transparency and governance
  • To always operate within the terms of the law and the Group’s corporate governance system, in particular, the values and standards of conduct enshrined in the Group’s Code of Ethics and policies on integrity, based on the principle of “zero tolerance” of illegal acts and situations of fraud.

 

In addition to Neoenergia’s Corporate Risk Management Policy, the Board of Directors has approved the other corporate and business risk policies:

  • Energy Market Risk Policy
  • Credit Risk Policy
  • Financial Risk Policy
  • Generation Business Risk Policy
  • Trading Business Risk Policy
  • Distribution Business Risk Policy