Risk and Opportunity Management
Risk Management is an institutional process embedded in each Business Unit and in each corporate function.
Today, the world is facing significant environmental, social, geopolitical and technological challenges,
such as climate change, deforestation, water scarcity, pollution, human rights violations, the spread of armed conflicts and the development of new forms of artificial intelligence (AI). Failure to adequately address these issues could result in significant risks for both society in general and organizations in particular.
In the particular case of Aleatica Mexico,
we are exposed to a wide range of risks inherent to our operations and the countries in which we operate. These risks have the potential to impact our performance and make it difficult or even impossible to achieve our goals. In this context, Risk Management plays a crucial role in our organization. This practice allows us to effectively address risks and opportunities, managing uncertainty appropriately in all our activities and projects. The objective is to prevent or reduce unwanted effects (risks) and enhance or increase desirable effects (opportunities), thus contributing to the achievement of planned results.
Risk governance
At Aleatica, risk management is an evolving process aimed at improving our ability to respond to industry demands and changes. Business Units and corporate functions collaborate closely with Risk Management to identify and assess risks, define controls, develop mitigation strategies, and monitor the implementation of these plans.
Additionally, the Executive Risk Committee, led by the Director of Risk and Compliance and composed of Executive Committee members, reviews the organization’s major risks and the actions taken to mitigate them.
Aleatica’s executive committee, along with the Board and its Committees, provides the necessary leadership to ensure effective risk oversight.
In 2023, six articles on risk management were published in our internal Aleatica magazine, four informative messages on screens and an informative pill.
Risk management processes
Risk management at Aleatica is an institutional process driven by the Board of Directors, supervised by its Audit Committee, supported by Senior Management, and integrated into its corporate culture through the Corporate Integrity pillar.
The active management of risks and opportunities at all levels of the organization is intended to be integrated and applied to all of Aleatica’s activities and projects, acting as the foundation for the decision-making process.
Aleatica has a Risk Management policy and standard that were approved by the Board of Directors and are subject to annual review.
Through our Comprehensive Risk Management framework, the company continuously identifies, evaluates, controls, monitors, and reports the full spectrum of strategic, financial, operational, and compliance risks and opportunities to which the organization is exposed.
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Identification
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Evaluation
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Answer
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Monitoring and Reporting
Main risks
Our organization faces a variety of risks and uncertainties. Listed below are some of the risks that we consider most material to our business and performance at this time.
- Sociopolitical
- Insecure environment
- Cyberattacks
- Natural Disasters
- Health and Safety
- Ethics and Fraud
- Legal Proceedings
- Environmental and Social Sustainability
- Climate Change
- Financial
Emerging risks:
Aleatica could be exposed to emerging risks, i.e. new or uncertain risks, whose exposure could increase in the future due to new external contexts. These scenarios could affect our organization in the medium/long term and are therefore monitored.
The following is a non-exhaustive list of some emerging risks that could impact our business:
Increased water scarcity due to climate change could have a greater impact on our operations and services. This hazard may affect instances such as machinery cleaning, restroom infrastructure, assistance to customers in case of crises or disasters, and so on
Changes in the work expectations of new generations, the lack of qualified staff and competition for talent could affect our business.
Extreme weather events increased by climate change could have a greater impact (both in frequency and intensity) on our operations and services. These events are occurring with increasing frequency and intensity, requiring greater prevention and action.
Rising global geopolitical tensions and ongoing conflicts directly affect the economic and social situation of countries, as well as their legal security. These events could directly affect the profitability of existing or future investments.
The emergence of new modes or forms of transportation (e.g., carpooling, increased use of public transportation, greater teleworking and geographic mobility opportunities, etc.) could have an impact on our revenues.
New pandemics, diseases or viruses, such as SARS-CoV-2 (COVID-19), could emerge and intensify, directly impacting the availability of staff, vehicular traffic on highways, etc
