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

Risk Management in Brazil

“Overview”

Risk Management & Insurance

Flash back (2000 - 2014) of the main events involving Risk Management in Brazil.

(2000 – 2007)

Bacia de Campos, RJ – Mar /2001Submerge Plataforma P-36 in the SeaSource: Google.

Major accidents ocurred in the period (2000 – 2007)

Brazil – May / 2001Lack of water in reservoirsSource : Google.

Major accidents ocurred in the period (2000 – 2007)

Paranaguá, PR Jul / 2004Train falls in the Forest.Source : Google

Major accidents ocurred in the period (2000 – 2007)

Paranaguá, PR – Nov / 2004Ship Explosion inside the harborSource: Google.

Major accidents ocurred in the period (2000 – 2007)

São Paulo, SP – Jan /2007Shutdown of the Underground WorksSource: Google.

Major accidents ocurred in the period (2000 – 2007)

São Paulo, SP – Jul / 2007The Biggest Air crash in BrazilSource: Google.

Major accidents ocurred in the period (2000 – 2007)

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 Scienceswww.slideshare.net/marcuspessoal/gerenciamento-de-riscos-na-cosern-leisarbanes-oxleywww.knoow.net/cienceconempr/economia/acordodebasileia.htmwww.cosif.com.br/mostra.asp?arquivo=contabilidade_internacional-cosowww.coso.org

ISO – 31000

– ” Risk Management”

Laws and procedures for Enterprise – BM & F Bovespa - NYSE

– ERM (Enterprise Risk Management)

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

Highlight of the seventh. Debates on Risk Management 2006Value 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 issuesRisk 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

Audits raise questions about Risk Management in Companies

Fonte KPMG Auditores Independentes

http://www.kpmg.com.br/aci/publicacoes/Destaque_7.pdf

Risk Management & Insurance

Flash back (2000 - 2014) of the main events involving Risk Management in Brazil.

(2007 – 2014)

Bacia de Campos, RJ – Nov /2011Leakage due to drillingSource : Google

Major accidents ocurred in the period (2007 – 2014)

São J. do Rio Preto, SP – Nov / 2013Railway accident involving cargoSource: Google.

Major accidents ocurred in the period (2007 – 2014)

Santos, SP – Aug / 2014Aircraft AccidentsSource : Google e CENIPA (Centro de Investigação e Prevenção de Acidentes)

Major accidents ocurred in the period (2007 – 2014)

Brasil, BR – Aug / 2014Lack of water in reservoirsSource: Google.

Major accidents ocurred in the period (2007 – 2014)

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

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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.

DECRETO-LEI Nº. 73, DE 21 DE NOVEMBRO DE 1966

Dispõe sobre o Sistema Nacional de SegurosPrivados, 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 BENSPERTENCENTES 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

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

Q & A

Back Up

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

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