Our risk management is comprised of an integrated structure of policies and guidelines
In 2009, Petrobras maintained the practice of limiting transactions with derivatives
The amount of credit granted in 2009 grew and was 33.8% higher than in 2008
Our risk management is comprised of an integrated structure of policies and guidelines, a Committee for Risk Management, and of identification, quantification, response, and control systems. This structure is permanently adapted to follow the most advanced corporate governance practices, to balance the degree of risk tolerance, and the profitability growth goals and expectations. Factors impacting our results are constantly monitored, such as variations in the price of oil and its oil products, interest rates (domestic and foreign), and exchange rate fluctuations.
According to the Risk Assessment and Management guideline in the HSE policy, “risks inherent to the company’s activities should be identified, evaluated, and managed to avoid accidents and/or ensure the minimization of their effects.” This includes requirements that predict systems to identify and assess the frequency and consequences of undesirable events, to prevent and/or minimize their effects to the maximum possible extent; mechanisms to prioritize the identified risks, including control measure documentation, reporting, and monitoring; risk assessment process in all project and product phases, including those related to protecting the workforce, neighboring communities, and the final consumer; periodic risk assessments or as changes in processes are identified; and risk management in accordance with their nature and magnitude on the various administrative levels.
The precautionary principle is considered in risk and environmental impact assessments made for new ventures or if changes are introduced to existing facilities, although there is no specific corporate guidance for their application. The company products comply with rules and regulations, therefore the potential damage to the environment are known. We work preventively in managing these risks so they do not materialize. When new pro ducts are launched on the market, especially the formulated ones, a verification is made to determine whether any of their components represent an unknown risk to the environment or to human health. If so, the component is replaced by another one, with known, manageable risks.
The Investor’s Portal, on Petrobras’ website, presents some of the risk factors related to the company’s operations, and has data, about the Petrobras International Finance Company (PifCo) subsidiary, about the relationship with the Brazilian government, about the Brazil factor, and about capital shares and public debt securities.