Risk Management in Brazil “Overview”. Risk Management & Insurance Flash back (2000 - 2014) of the main events involving Risk Management in Brazil. (2000.

Apresentação em tema: "Risk Management in Brazil “Overview”. Risk Management & Insurance Flash back (2000 - 2014) of the main events involving Risk Management in Brazil. (2000."— Transcrição da apresentação:

1 Risk Management in Brazil “Overview”

2 Risk Management & Insurance Flash back (2000 - 2014) of the main events involving Risk Management in Brazil. (2000 – 2007)

3 Bacia de Campos, RJ – Mar /2001 Submerge Plataforma P-36 in the Sea Source : Google. Major accidents ocurred in the period (2000 – 2007)

4 Brazil – May / 2001 Lack of water in reservoirs Source : Google. Major accidents ocurred in the period (2000 – 2007)

5 Paranaguá, PR Jul / 2004 Train falls in the Forest. Source : Google Major accidents ocurred in the period (2000 – 2007)

6 Paranaguá, PR – Nov / 2004 Ship Explosion inside the harbor Source: Google. Major accidents ocurred in the period (2000 – 2007)

7 São Paulo, SP – Jan /2007 Shutdown of the Underground Works Source: Google. Major accidents ocurred in the period (2000 – 2007)

8 São Paulo, SP – Jul / 2007 The Biggest Air crash in Brazil Source: Google. Major accidents ocurred in the period (2000 – 2007)

9 Law SOX – Sarbanes-Oxley / 2002 Articles - 302, 404, 906 302 - Efficiency in internal controls reviews 404 - Test Internal controls and adequate control structure 906 - Criminal Penalties CFO and CEO COSO – 1985 / 1992 / 2002 (Committee of Sponsoring Organizations of the Treadway) - Improvement of Financial Reporting based on Internal Controls. Basel / 1988 Agreement Basiléia I, II I - Supervision of Banks on the Credit Risk II - 3 Pillars accounting oversight, discipline and transparency in the market. Source: COSERN Presentation and Social Economic Sciences www.slideshare.net/marcuspessoal/gerenciamento-de-riscos-na-cosern- leisarbanes-oxley www.knoow.net/cienceconempr/economia/acordodebasileia.htm www.cosif.com.br/mostra.asp?arquivo=contabilidade_internacional-coso www.coso.org ISO – 31000 – ” Risk Management” Laws and procedures for Enterprise – BM & F Bovespa - NYSE – ERM (Enterprise Risk Management )

10 Research Results – Risk Management and Corporative Governance 2000 Companies – between R$ 250 MM a R$ 5 Bi of Revenues. Executive Summary: - The National Business intensify their interest in the topics Risk Management and Corporate Governance. - The internal audit of the Company has assumed an important role in risk management led or not for a specific area or a "Chief Risk Officer". - 46% plan to create Area Management and Risk Management - 20% plan to hire professionals for this area - 33% The Company does not intend to create this department. - 1% Do not know. Source : KPMG Management Assurance Services Survey – 2004 about Risk Management Implementation https://www.google.com.br/search?q=relatorio+resultado+da+pesquisa+kpmg+2004&espv=2&biw=1024&bih=634& source=lnms&sa=X&ei=EP9oVOSNA5fCsATGpYCoCQ&ved=0CAUQ_AUoAA&dpr=1#q=resultado+da+pesquisa+ kpmg+2004

11 Highlight of the seventh. Debates on Risk Management 2006 Value Generation Model for Shareholders - 2000 Companies Search Results - Questionnaire: - 46% have an area for Risk Management - 81% have 5 or more employees for this area - 31% area is responsible Controlling and Finance. 69% Risk Management department should be responsible for Risk Management - 21% the board of directors should be involved in issues Risk Management % With respect to 100%. Source : KPMG Auditores Independentes http://www.kpmg.com.br/aci/publicacoes/Destaque_7.pdf Survey – 2006 about Risk Management Implementation

12 Audits raise questions about Risk Management in Companies Fonte KPMG Auditores Independentes http://www.kpmg.com.br/aci/publicacoes/Destaque_7.pdf

13 Risk Management & Insurance Flash back (2000 - 2014) of the main events involving Risk Management in Brazil. (2007 – 2014)

14 Bacia de Campos, RJ – Nov /2011 Leakage due to drilling Source : Google Major accidents ocurred in the period (2007 – 2014)

15 São J. do Rio Preto, SP – Nov / 2013 Railway accident involving cargo Source: Google. Major accidents ocurred in the period (2007 – 2014)

16 Santos, SP – Aug / 2014 Aircraft Accidents Source : Google e CENIPA (Centro de Investigação e Prevenção de Acidentes) Major accidents ocurred in the period (2007 – 2014)

17 Brasil, BR – Aug / 2014 Lack of water in reservoirs Source: Google. Major accidents ocurred in the period (2007 – 2014)

18 Research (2012 - 2013) - (2013 - 2014) on the Risk Management * *

19 Risk Management and Insurance How is the Risk Management in Brazilian Companies? Audit Corporate Governance Risk Management & Insurance Identify, manage, monitor and transfer risk Design of qualitative and quantitative risk controls Insurance and Coverage Program Risk Comittee Implementation Standards and Procedures. Audit compliance with Regulations. Check fraud and corruption. Verification of compliance with standards and procedures Audit Comittee Establishing Policies and Procedures Corporate Code of Ethics and Conduct Fraud Prevention.

20 DECRETO-LEI Nº. 73, DE 21 DE NOVEMBRO DE 1966 Dispõe sobre o Sistema Nacional de Seguros Privados, regula as operações de seguros e resseguros e dá outras providências CAPÍTULO VI – DO SEGURO OBRIGATÓRIO DE TRANSPORTE DE BENS PERTENCENTES A PESSOAS JURÍDICAS Art. 12 – As pessoas jurídicas, de direito público ou privado, são obrigadas a segurar os bens ou mercadorias de sua propriedade, contra riscos de força maior e caso fortuito, inerentes aos transportes ferroviários, rodoviários, aéreos e hidroviários, quando objeto de transporte no território nacional, CAPÍTULO IX – DO SEGURO OBRIGATÓRIO CONTRA RISCO DE INCÊNDIO DE BENS PERTENCENTES A PESSOAS JURÍDICAS Art. 18 – As pessoas jurídicas, de direito público ou privado, são obrigadas a segurar, contra os riscos de incêndio, seus bens móveis e imóveis,situados no País desde que, localizados em um mesmo terreno ou terrenos contíguos, tenha, isoladamente ou em conjunto Decree Law on Compulsory Insurance in Brazil Impacts of Claims in Insurance Cost for Companies

21 With reference to the Risk Management and Insurance: - Companies still do not invest enough in RM practices. - The Brazilian insurance market still accepts “risks” not treated with possibility of having severe events (political, environmental, air, sea, business and infrastructure), - Insurance Market in full development. Growing always above the country's economic results. - The insurance industry is about 4% of PIB (GDP) Opportunities

22 Q & A

23 Back Up Source : KPMG Auditores Independentes http://www.kpmg.com/BR/PT/Estudos_Analises/artigosepublicacoes/Documents/Auditoria/Estudo-GC-2012.pdf http://www.kpmg.com/BR/PT/Estudos_Analises/artigosepublicacoes/Documents/Risk-Consulting/A-Governanca- Corporativa-e-o-Mercado-de-Capitais-13-14.pdf *