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Risk Management and Corporate Control
The monitoring of risks that may interfere with the ability of CTG Brasil to develop and generate value from its business is conducted transversally, with the support of an Enterprise Risk Management area that is based on internationally recognized methodologies for this management (ISO 31000 and COSO). The Company’s risk matrix, defined in 2020, gathers 22 risks, distributed in: Financial, Operational, Market, Compliance/Regulatory, Reputation, and Strategic.
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Hydrological risk
CTG Brasil minimizes its exposure to this risk, intrinsic to the hydropower generation sector, by means of the Portfolio Risk, Energy Planning and Operation areas, internal structures that evaluate future scenarios for water availability and suggest protection strategies to the commercial areas.
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Operational risks
The Dam Safety Plan (PSB) covers all the plants of CTG Brasil and includes, among other instruments, the Emergency Action Plan (PAE). In addition, the Emergency Operation System (SOSEm) established in the operations defines the measures for dam safety and community protection, including periodic outreach meetings to local audiences.
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Financial risks
A portion of these risks is supported by an insurance portfolio that takes into account the nature and degree of severity, aiming to eliminate or mitigate possible losses. The main insurance coverage covers operational risks, general, environmental and executive liability, and data protection and cyber liability. Financial management is governed by its own policies, including monitoring of the main macroeconomic and sector indexes that impact cash and debt management.
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Counterparty risks
The Company monitors the credit ratings of all trade receivables from the unregulated market through its own methodology, based on market and financial information, aiming at mitigating eventual losses due to default.
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Compliance risks
The company continuously assesses the compliance risks in the context of its business and addresses them through the Corporate Compliance Program, which consists of communication and training actions, due diligence in contracting processes (trade payables and trade receivables), M&A and donations, investigation of complaints received through the Ethics Line channel and analysis of conflicts of interest, among others.