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Risk Management

Risk is the effect of uncertainty on organizational objectives, manifested in many ways and potentially impacting all dimensions of the business. Business risk management focuses on the relevant potential risks that, if any, could impact people, communities, the environment, operational continuity, reputation and the achievement of the company's overall business objectives.

Vale has an integrated Risk Management Governance flow, based on the concept of Lines of Defense, which represents how periodic reviews are performed to ensure alignment between strategic decisions, performance, definition and monitoring of risk tolerance limits approved by the Company's Board of Directors, upon recommendation of the Executive Board.

Risk management governance in our company is evolving to strengthen the safety of people and operations.

Lines of Defense

Risk Governance

A very relevant step for our governance was to open the Risk Executive Committee in 4 executives committees with different scopes of activity, one of them entirely dedicated to geotechnical risk management.

We also fortified our defense line model with the new Safety and Operational Excellence Executive Board, which has a work plan in place.

In our dam assessments and management, we are implementing a very high level of rigor, with the most conservative methods

1st Line of Defense

Consist on the risk owners, who are directly responsible for keeping the risks within the tolerance limits defined by Vale, and the process executors of operational, commercial, project, support and administrative areas. They hold the primary responsibility and directly manage the risks, identifying, evaluating, treating, preventing and monitoring their risks in an integrated way.

2nd Line of Defense

In addition to the Safety and Operational Excellence Executive Office, which is the 2nd Line of Defense for Operational Risks, there are areas such as the Environment, Corporate Integrity and Information Security that should also act as 2nd Line of Defense Specialist for the respective potential risks.

3rd Line of Defense

The 3rd line of defense comprises areas total independence from the administration, that is, the Internal Audit and the Ethics and Conduct Office which performs, observing their respective scopes, evaluations, inspections, through the execution of control test and investigations of allegations, providing exempt assurance, including on the effectiveness of risk management, internal controls and compliance.

In order to fully understand the responsibilities of our Defense Line, click here and access our Policy

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