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São Paulo, Jan. 23 – The Board of Directors of Odebrecht S.A. approved the Risk Management Policy to strengthen decision-making processes and to ensure adequate treatment of events that could affect its business activities and the achievement of its strategic goals. The 15-page document serves as a directive for the holding company and establishes guidelines for the seven direct or indirect subsidiaries, whose board of directors are expected to approve similar policies. 

The initiative is aligned with the transformations announced by the Group to enhance its Governance model and strengthen the holding company’s role as a strategic business and investment architect. It also reinforces the commitment to acting ethically, with integrity and transparency. With these new guidelines, the holding company now has four new policies already approved under the new management model of the Odebrecht group (in addition to Risk Management, the Governance, Compliance and People policies).

The Risk Management Policy presents concepts and guides team members on the need to evaluate the business environment, enhance decision-making processes and strengthen internal controls to reduce risks to acceptable levels. 

“Aligned with the concepts of the Odebrecht Entrepreneurial Technology (TEO),” the policy states, “the desire for exclusively short-term results tends to put the foundation of the Business at risk, which is to serve clients by acting ethically, with integrity and transparency. To be strong, Companies must clearly opt for the future by foregoing immediate results. The risks we run must be directly related to our Businesses, and we must know these risks and mitigate them to obtain stronger and better results.” 

Odebrecht’s Risk Management Policy also recommends: “The risk management process seeks to ensure that those responsible for taking decisions, at all levels of Odebrecht S.A., have timely access to sufficient information on the risks to which the company is exposed in order to increase the probability of achieving its goals and reducing risks to acceptable levels.”

The risk management process is aligned with Odebrecht’s long-term vision. The limits and maximum acceptable risk exposure levels will be defined in the first half of this year. And, by end-2018, all risks should be identified and mapped. This effort will involve at least six categories: 

Strategic risks

Financial risks

Image and reputational risks

Legal and regulatory or compliance risks 

Operating risks 

Social and environmental risks

The Policy was based on the principles and concepts of the Committee of Sponsoring Organizations of the Treadway Commission (COSO), the certificate ISO 31000:200 and the Brazilian Corporate Governance Institute (IBGC). 

To implement the directives, Odebrecht will administer training programs in various departments to encourage engagement by all team members and the incorporation of a risk management culture throughout the entire Group. 

About the Odebrecht Group

Founded in 1944, Odebrecht is a Brazilian company with a global footprint, with operations in 25 countries. Its seven Business Units operate in the petrochemical, engineering & construction, infrastructure, agroindustrial, oil & gas, transport, real estate and shipbuilding industries. Each Business Unit is financially and operationally self-sufficient and has its own governance structure, which is reinforced by an effective Compliance system and by the commitment of all team members to act ethically with integrity and transparency. The Odebrecht Group has around 65,000 professionals of various nationalities and exports products and services to approximately 100 countries.

For additional clarifications, please contact:
CDN Comunicação
Caroline Novaes +55 11 3643-2805 –  caroline.furlan@cdn.com.br
Juliana Souza +55 11 3643-2724 –  juliana.souza@cdn.com.br
Thais Rosa +55 11 3643-2717 –  thais.rosa@cdn.com.br