Strategy and progress
Risks and opportunities
Risks and opportunities [GRI 103-1]
The dynamics and changes of the organizational environment constantly give rise to challenges related to the risk and compliance management model. The following are some of the main opportunities identified:
- Generating value based on the integration of the model with the corporate strategy.
- Ensuring the relevance and visibility of the model at all levels, including the anticipation required for adequately interpreting and managing trends and risk signals, as well as the unabridged adoption of methodologies and responsibilities by the process leaders.
- Adopting new technologies for enhancing the system, managing risk-related data and consolidating an adequate monitoring and reporting mechanism that allows understanding the emerging risks and their impact.
- Promoting a proactive response by the employees regarding risk management.
- Ensuring the capabilities and resilience of the talent required for an effective risk mitigation, as well as the relevance of its operation and engagement protocols in line with the evolution of the business environment and the corporate philosophy, reflected on the guidelines of the Reputation Management Committee.
Regulatory compliance
Aligning the multiple governance and management bodies with the corporate principles and philosophy within the framework of the business ethics program, the regulatory surveillance and the consolidation of the self-control and compliance systems.
Outlook
Outlook
- Capitalizing on the overarching capabilities related to digital transformation with the aim of developing real-time risk management models.
- Enhancing the risk analytics for the decision-making process.
- Consolidating the criteria and definitions of both tolerance and appetite, enabling the adoption of the necessary tools for ensuring the timely monitoring of the corresponding risk levels.
- Integrating the existing compliance management functions based on a comprehensive management model aligned with the standards required for ensuring the execution of the operations in line with the corporate philosophy and competitiveness, and synchronizing the expansion speed of the compliance model related to money laundering and terrorism financing with the Organization’s growth.
- Strengthening the organizational resilience as an overarching capability.
- Incorporating dynamic assessment and treatment perspectives into the risk management model; such perspectives must be supplementary to the traditional vision and enrich the elements of the context, assessment criteria and synergies in the management work in order to ensure the efficacy, relevance and productivity.
Success stories and acknowledgments
Success stories and acknowledgments [GRI 103-3]
- Top score in the field of risk and crisis management in the Dow Jones Sustainability Index (DJSI)
Grupo Nutresa obtained the top worldwide score in terms of risk and crisis management in the Dow Jones Sustainability Index in the food sector. For this Index, the corporate practices of 106 companies from the industry were evaluated.
- Reputation management acknowledgment
Grupo Nutresa was acknowledged for the sixth consecutive year as the second company with the best reputation in Colombia and the top one in the food sector by the corporate monitor “Merco Empresas y Líderes Colombia” in its 2020 edition. The review comprised a total sample of 72.591 companies that were evaluated.
- Public/private alliance for managing risks associated with money laundering and terrorism financing
Creation of the first analytical model for the detection and analysis of red flags related to money laundering and terrorism financing within the framework of the public-private alliance for big data and data analytics called Caoba.
Progress
[GRI 103-1]
Risk and crisis management
- Progress made in the consolidation of the risk, trend and opportunity management model, which contributed to the construction of the 2030-vision strategic plans and to the effective management of the Company’s current and emerging risks.
- Update of the Risk Management Manual, which includes modifications to the analysis of control measures, the incorporation of methodological guides for the evaluation of opportunities, the update of the risk catalog, criteria for managing risks in projects and the assessment of risks associated with the sourcing chain and climate change.
- Diagnosis and implementation of the recommendations issued by the Task Force on Climate-related Financial Disclosure (TCFD) and formulation of the methodology for the assessment of the climate change risks and the cost of the materialization of such risks within the financial results.
Description of risks and opportunities [GRI 103-1]
- Creation of the Comprehensive Risk Management Work Group, which includes the participation of the people in charge of leading these systems across all Businesses and regions with the aim of sharing good practices, building knowledge and establishing synergies.
- Monitoring of the strategic risks of each one of the Businesses, including the deployment from and to the tactical and operational levels. This review considered the context of the COVID-19 pandemic and incorporated the risk assessments.
- Management of the risk assessment exercises by means of the GIR application software, the Company’s standardized risk management tool that grew over the year in terms of risk analysis by 16,8% in comparison to the previous year, with more than 29.800 entries analyzed [GRI 205-1]. .These assessments also comprise the analysis of the financial, human, environmental and reputational resources, and consider strategic, operational, financial, integrity and compliance risks, as well as those associated with climate, natural and epidemiological phenomena. [GRI 205-1] [GRI 205-2] [GRI 412-1].
Training
148 sessions were organized and held, including talks, workshops, simulations and virtual courses for more than 3.600 employees and key suppliers. These numbers represent more than 5.551 hours of training and an 83,6% growth in terms of benefited employees with respect to 2019.
Risk Analytics
Progress was made in the review of the levels of capacity, tolerance and appetite by modeling loss scenarios for financial and operational risks, which allowed enriching the Organization’s risk analytics and monitoring capacity.
Business Continuity System
The COVID-19 pandemic that struck in 2020 put the previously designed and implemented plans and protocols for managing both crises and the continuity of the operations to the test, successfully demonstrating the importance of this system and the relevance of continuing to strengthen it. The system achieved the goal set for 2020 regarding its maturity level: it reached a strategic level with an 84% progress, which adds to the learned-lesson exercises carried out by all of the Company’s Businesses to assimilate the learnings emerging from the crisis caused by the pandemic. In addition, the Organization made progress in the consolidation of the business continuity management, expanding the plans to the sourcing chain with a focus on critical suppliers, along with the outreach into countries like Peru, Malaysia and United States.
Nutresa Monitor
Creation of an interdisciplinary team for consolidating and maintaining updated the Business leaders with relevant information about the changes in the Company’s business environment caused by the pandemic with regard to matters such as levels of contagion, impact on the industry, actions by the brands, response of consumers, risks and business continuity in order to facilitate the decision-making process and the corresponding implementations related to the main risks and opportunities.
Compliance Management
This is a priority for Grupo Nutresa because, in addition to guaranteeing the Organization’s internal processes, it entails the participation in work groups established for the discussion of bills, regulations and standards, whether it is directly or through external consultants, specialized means or trade associations. The following are the main activities carried out by the Organization in this regard over 2020:
Prevention of the risks associated with money laundering and terrorism financing
The consolidation of the system was developed through its incorporation into the management systems of the Businesses; the strengthening of the capabilities of the compliance officers, with more than 380 hours of training invested; and the update of the policy, the manual and the procedures related to the management of money laundering and terrorism financing risk. Additionally, the Organization created the first analytical model for the detection and analysis of red flags as one of the activities of the Caoba academic-business alliance, which contributed to the preventive management of this risk and laid the foundations for new developments.
Business Ethics Program
Grupo Nutresa continued working on the communication and promotion of the business ethics program known as “Actúo Íntegramente” (I act with integrity), and started holding a series of discussion conferences about both ethics and integrity led by the Company’s CEO. The first of them, which was titled “Cómo vivir y expresar el valor de la integridad” (How to live and express the value of integrity), included the participation of more than 1.600 employees from all of the Organization’s Businesses and regions where it operates. [ODS 16.5] [ODS 16.6].
Regulatory compliance
- Environmentally-focused regulatory monitoring activities that consisted in updating the environmental legal matrices for the identification of gaps and the assessment of regulatory risks and their potential impact on the natural capital.
- Creation of the legal labor risk matrix to allow standardizing the guidelines for the management of third parties and prioritizing the corresponding actions.
- Implementation of regulatory changes related to taxes, especially the changes contained in the Economic Growth Law and in the multiple provisions adopted by the national and local governments in the context of the sanitary emergency caused by the COVID-19.