Corporate Risk Management
Neoenergia’s Board of Directors, aware of the importance of risk management to achieve strategic objectives, compliance with regulations and for sustainable development, undertakes to develop all its capacities so that the relevant risks of all the group’s activities and businesses are properly identified, measured, monitored and mitigated, in addition to establishing mechanisms and basic principles for adequate risk-opportunity management.
The Corporate Risk Management division of Neoenergia is coordinated by the Risk Management Superintendence, connected to the Financial Management, and is oriented by the guidelines that follow:
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Neoenergia’s Corporate Risk Management General Policy defines the principles, guidelines and structure for risk management, being complemented by specific policies related to certain risks, corporate functions and business of the group, which includes risk limits/references, updated and approved annually by the Board of Directors.
Integrated Risk Control and Management Model
The Corporate Risk Management General Policy and its basic principles are implemented through an integrated risk control and management model, supported by the Global Risk Committee and supported by an adequate definition and establishment of functions and responsibilities at different levels (operational and control), and in procedures, methodologies and support tools appropriate to the different stages and activities of the model, which include:
a) The establishment of a structure of policies, guidelines, limits and risk indicators, as well as the respective mechanisms for their approval and development, reviewing and establishing the risk appetite assumed annually in a qualitative and quantitative manner, in accordance with the objectives established in the multiannual plan and in the annual budgets;
b) Continuous identification of the relevant risks and threats, considering their possible impact on corporate objectives and results;
c) Analysis of these risks, in each one of the businesses and corporate functions, and in a consolidated form in the Group;
d) Measurement and control of risks following consistent procedures and standards common to the group;
e) Analysis of the risks associated with new investments, as an essential element in decision making, assessing their risk-return, including the risks of assets integrity and associated with climate change;
f) Maintenance of an internal control system for compliance with policies, guidelines and limits, through appropriate procedures and systems, including contingency plans necessary to mitigate the impact of risk materialization;
g) Continuous assessment of the suitability and efficiency of the application of a system of best practices and recommendations regarding risks for its possible incorporation in the management model; and
h) Audit of the integrated model of risk control and management by the Internal Audit Supervisory team.
In addition to Neoenergia’s Corporate Risk Management General, we have the following corporate and business-specific risk policies:
To access Neoenergia’s policies, Click here