Risk Management

As a company listed on the Novo Mercado of the Stock Exchange, Camil has high levels of Corporate Governance and values ​​ethics and transparency in the conduct of its business, as well as full compliance with applicable laws and regulations.
In order to ensure the maintenance of the Company’s ethical principles in line with current legislation, Camil has a Board of Directors (composed of independent members), a Fiscal Council and advisory and supervision committees in the areas of Internal Audit, Ethics, Finance and People and Management, in addition to having an external and independent evaluation of its financial statements by the External Audit, which complements the portfolio of structures that maintain good corporate governance practices.
On January 10, 2019, the Board of Directors approved the Company’s Risk Management Policy, which was updated on May 26, 2020. Its formalization aims to establish and ratify the principles, concepts and guidelines, as well as the roles and responsibilities to be observed in the Risk Management process of Camil Alimentos S / A and its subsidiaries. In addition, this normative instrument is a demonstration of the importance given to Risk Management by the Company, which has been evaluating and managing its risks, so that they are within the limits of appetite and risk tolerance defined by it, minimizing its threats and enhancing its opportunities, applying an integrated risk management approach and aligned with the business strategies and objectives.
The assumptions adopted by the Company for managing its risks are based on the combined application of the principles and guidelines of “COSO ERM 2017 – Integrating with Strategy and Performance Executive Summary” and “ISO 31000: 2018 – Risk Management” as a reference for Risk Management, in order to constitute a conceptual and practical model for corporate risk management.
The commitment to integrity, ethical values, as well as the dissemination of the risk management culture in the Company is the responsibility of all employees, who are also responsible for managing their risks and, based on this premise, the Management structure The company’s Risk Management Committee considers the joint performance of the management and corporate governance bodies, in accordance with the concept of the 3 lines of defense of the “Institute of Internal Auditors – IIA”.
In accordance with our “Reference Form”, we address the main risk groups, which are strategic, financial, operational / systemic and compliance / regulatory, which encompass, in their entirety, the risks observed by Camil.

Risks relating to the Company

Investment in securities issued by the Company involves exposure to certain risks and, before making any investment decision in any security of the Company, potential investors should carefully analyze all the information contained in our Reference Form, the Financial Statements of the Company and respective explanatory notes, and the risk factors mentioned below. The Company’s business, financial condition, results of operations, cash flow, liquidity and/or future business may be adversely affected by any of the risk factors described below. It should be noted that the risks exposed here are not exhaustive; for more information, access our Reference Form.

  • The Company may not be able to successfully implement its business strategy, which may adversely affect its results and the value of its shares;
  • The Company may not be able to maintain the reputation and recognition of its brands or develop new brands successfully, which may adversely affect it;
  • The Company may not be able to integrate and capture synergies from acquisitions and associations, adversely affecting its growth strategy;
  • The Company’s inability to honor its financial obligations, observe contractual restrictions and obtain additional capital necessary for its future growth, may adversely affect its business;
  • Outbreaks of contagious diseases or pandemics of epidemic diseases, such as the new coronavirus (COVID-19), can cause changes in the patterns of trade and consumption, which can significantly affect the Company’s operations and operating results;
  • The Company is subject to risks of unethical conduct, fraud, non-adherence to the rules and corruption;
  • The operations of the Company’s technological systems are subject to risks of discontinuity, capacity and availability;
  • Cyber ​​attacks that result in data security breaches, may cause loss of revenue, damage to reputation, as well as damage operations and result in the disclosure of confidential or exclusive information;
  • Any changes to the data privacy legislation and regulations, as well as the interpretation thereof, may generate significant costs for the Company as well as compel it to change its business practices;
  • The interruption of activities or loss of the Company’s operating units, especially in production, marketing and distribution, may adversely affect the Company’s business, financial condition and results.

The risks described above are those that the Company is aware of and understands that may adversely affect it. In addition, additional risks not currently known, or considered non-material by the Company at this time, may also adversely affect the Company if they materialize. The market price of the securities issued by the Company may decrease due to any of these and / or other risk factors, in which case potential investors may lose a substantial part or even all of their investment in the securities issued of the Company.

Market Risks

Market risks are related to the potential negative impact on the value of the Company’s assets and liabilities, due to adverse changes in market parameters, such as fluctuations in commodity values traded by the Company, as well as in credit, liquidity and interest rates and exchange. In the normal course of its business, the Company is exposed to market risks that are inherent in the activities it performs, as described below:

  • Commodity risk;
  • Credit risk;
  • Liquidity risk;
  • Interest Rate Risk and;
  • Exchange risk.

These risks are described quantitatively and qualitatively in our Reference Form.

Risks relating to Macroeconomics

The influence exerted by the Federal Government on the economy and the occurrence of political, economic and social events, may adversely affect the Brazilian economy, its business and the market value of Brazilian securities, including its shares. The Company defines the factors below as the main macroeconomic risks to which it is exposed and which may adversely and materially affect it.

  • Political and economic instability may adversely affect the Company’s business, results of operations and share price
  • Events and the perception of risk in other countries, especially in emerging countries, may adversely affect the market value of Brazilian securities and the price of the Company’s shares
  • The volatility and lack of liquidity of the Brazilian securities market, especially in the Company’s listing segment, may substantially limit the ability of the holders of the shares issued by the Company to sell them at the price and / or at the time they wish
  • The suspension, cancellation or non-renewal of the tax benefits that the Company holds may negatively affect its profitability and liquidity
  • Changes in Brazilian tax legislation or conflicts in its interpretation may adversely impact the Company, increasing its tax burden
  • The Company is subject to macroeconomic and political risks related to the countries where it operates and / or to which it exports, such as
  • Increases in trade barriers for the import and export of products in the food sector, such as increased taxes and import tariffs on their products, government subsidies and prohibitions or imposition of restrictions on exporting their products to certain markets
  • Changes in the understanding or text of the legislation and regulations applicable to the markets in which it operates, including those of a tax, labor, environmental and health surveillance nature, or inconsistencies between laws and regulations of the different markets in which it operates
  • Interference by local governments in economic policies, especially in fiscal and tax regimes
  • Political, economic, exchange rate instability and devaluation of local currencies
  • Liquidity in the capital, financial and loan markets
  • Strikes in ports, customs, revenue and federal police and other interruptions in the transport of their products
  • Natural disasters, wars / armed conflicts, embargoes and / or acts of terrorism

The macroeconomic risk factors listed above are not exhaustive, for more information access our Reference Form.

Updated at 07/18/2022 at 03:25 pm