RA Sonae 59.indd

The Audit and Risk Management mission
To help companies reach their objectives via a systematic and structured approach to evaluate
and improve the effectiveness of risk management and control of business processes and
information systems.
Risk Management milestones
1984 - mds, insurance broker, was created with the objective
of managing the Sonae Group’s insurance and risk policy
throughout the world.
1996/1997 - Sonae re-organises all risk insurance agreements
in relation to group activities (nationally and internationally).
From this moment, Sonae insurance policy has been based on a
global strategic approach.
Since 1997 - Several Internal workshops are held with each
sub holding about safety risks and preventive measures. The
implementation of risk management processes begins.
1999 - Sonae Re, a captive reinsurance company, managed by
mds, was set up with the objective of managing the Group’s
insurable risks worldwide. This company is based in Luxemburg.
This globalisation of Sonae’s Risks implied a higher level of
understanding and disclosure of risk exposure and preventive
measures, concerning insurable risks such as fire, explosion etc.
1999 - Sonae reorganizes the Internal Audit function. In addition
to routine financial and compliance auditing, it starts to look at
audit risk in a broader, strategic manner. Sonae starts a one year
project in which internal audit is reorganised. Over a period of
one year, a major analysis of risk factors that could affect Sonae’s
businesses was carried out, based on interviews, questionnaires
and several workshops. The output of this project in 2000 was:
. Identification and evaluation of Group business risks
. Focus of Internal audit on risks associated with business
processes and information systems
. Set up of Audit and Risk Management functions in the holding
company and each sub holding
. Implementation of Risk Management and Information System
Audit activities
2000/2001 - Sonae felt it was important to develop methodologies
concerning risk management. It began a project in Portugal to build
them. The pilot project was implemented in Modelo Continente,
more specifically in Sport Zone stores. The methodology was tested
there, and then rolled out across the Group.
“Risk management is carried out with the goal of adding value, through the
management and control of uncertainties and threats that may impact the businesses
of Group companies on an ongoing basis, with a view to taking advantage of business
opportunities”.
Belmiro de Azevedo, Managing Risk by Value Creation, Risk Management Forum, October 2006
Sustainability Report 06
Sonae SGPS, S.A.
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