Risk Management

The corporate risk management is an integral part of all strategic and operational processes, and aims at preserving and creating value to Algar Telecom, its shareholders and the other stakeholders. In line with both the best corporate governance practices and the Algar Group's directives, the Company holds a committee, which directly reports to the Board of Directors, alongside a well-structured risk management policy, shared with all related parties.

With the purpose to identify, assess, classify and prepare he action plans to mitigate the different risks inherent to the Group's business operations, the Risk Audit and Management Committee makes use of the Enterprise Risk Management (ERM) methodology, adopted by the Committee of Sponsoring Organizations (COSO), an international organization that sets out and disseminates the best risk management, internal controls and fraud detection practices.

The committee is responsible for monitoring the compliance with the rules set out by the Algar Group's Risk Management System, without losing sight of the principles established by the management model – among which, "Autonomy with Responsibility". Cases involving conflicts of interest must be identified, assessed and treated in accordance with the best corporate governance practices.