Learn more about the risk management at Odebrecht S.A.

Pablo Rios (left) and Mauro Figueira (right): they will take care of Risk Management at Odebrecht S.A.

Have you seen the Risk Management Policy of Odebrecht S.A.? Learn more about the new developments in processes and risk management at Odebrecht S.A.

Mauro Figueira will coordinate the Risk Management process at Odebrecht S.A. In this interview, he tells us more about the Risk Management Policy of Odebrecht that has been prepared on the subject. Read on and talk to your leader about it.

ON – What is a risk in the business environment?

Mauro – Risk is the possibility of occurrence of events that compromise the achievement of our strategic goals. With risk management, we can identify and measure the likelihood and impact of these events, and define strategies to mitigate them or draw up contingency plans.

ON – Why do we need a Risk Management Policy?

Mauro – Having a policy dedicated to this subject will strengthen our risk management culture.

The guidelines ensure that we have a well-structured process to improve decision-making, reduce risks to acceptable levels and enable the identification and appropriate response to each risk. This way, we increase the probability of achieving the planned results, while preserving the safety of people as well as the tangible and intangible assets of shareholders.

The policy was prepared considering the best market practices, inputs from specialized institutions, benchmarking with other companies and interviews with specialized consultants.

ON – What are the types of risks faced by Odebrecht?

Mauro – We have established six categories of risks for the Odebrecht Group. There is no hierarchy among the categories. It is necessary to evaluate each risk and identify the most significant risks considering the probability of occurrence and the potential impact on Odebrecht S.A. The categories are (in alphabetical order): strategic, financial, image and reputation, legal and regulatory or compliance, operational and social and environmental risks.

ON – What is the responsibility of team members in this process?

Mauro – Each team member is responsible for identifying and managing the risks related to their function. Team members should assess the risk environment they are exposed to, adopt effective controls, devise mitigation strategies and contingency plans, and focus on streamlining processes and decision-making. That is why it is important that every team member talks to their leader about this subject.

ON – How will this Policy be implemented at Odebrecht S.A.? What are the next steps?

Mauro – The risks faced by Odebrecht S.A. will be determined in conjunction with each area at the holding company and their probability of occurrence and potential impact will be assessed. After this, the Risk Matrix of Odebrecht S.A. will be prepared. Since risks cannot be completely eliminated, it is necessary to identify priority risks in order to optimize efforts. For each priority risk, a goal and response will be defined in line with the Strategic Objectives of Odebrecht S.A. The Board of Directors of Odebrecht S.A. and the Compliance Committee will also participate in the process, assessing the proposals and monitoring the results achieved, within the scope of monitoring of PA of DP-ODB.

It is the responsibility of each area – leader and team – to address the identified and prioritized risks, draw up mitigation and contingency plans, and also monitor them as part of their PA.

This process will begin in the 1st half of 2018, with support from an expert consulting firm that has been assisting us since we started drafting the policy.

ON – How will the Policy apply to the Business units?

Mauro – The Risk Management Policy of Odebrecht S.A. will serve as the basis for the preparation and approval of a Risk Management Policy for each Business unit, in compliance with the respective governance structures. Each Business unit will include any guidelines needed to adapt the Policy to its own characteristics or adjust what is relevant to its segment, while also taking into account inputs from its directors.

It is worth reading and fully understanding the Risk Management Policy of Odebrecht S.A. Access the Policy at the Governance Portal (governança.odebrecht.com) using your Odebrecht network login and password. If you have any doubts, talk to your leader or contact Mauro at mfigueira@odebrecht.com.