8 Corporate Governance / Risk Management

In an insurance company such as Allianz, in addition to financial and administration risks, attention must be constantly given to monitoring fraud. To mitigate this risk in a more effective manner, the company reinforces the team specializing in this aspect, creates work processes and intensifies its awareness program concerning the existence of fraud in order to guide employees on how to identify and report unusual conduct or situations that are not in line with the ethical principles.

Risk management is conducted in three fronts:

• Risk governance: involves the entire organization with corporate governance principles, from senior management to the business and products areas.

• Risk management: assesses, monitors, and develops policies, standards and procedures to address risks associated with administration, operation, and marketing of insurance products, which make Allianz Seguros susceptible to corporate risks.

• Capital management: responsible for monitoring and preserving the financial health of the company, identifying areas of attention and applying preventive or corrective measures to ensure sustainable growth.

9 Corporate Governance / Protection of Reputation

In order to manage reputation risks, Allianz Brazil adopts the practices Allianz Standard for Reputational Risk and Issues Management (ASRRIM), which aim to evaluate if business transactions are associated with any sensitive area or pose other correlated risks.

10 Corporate Governance / Management of Business Continuity

All companies are exposed to adversities, which can be a result of several factors, such as economic, environmental, social, and operational changes. These adverse events can place the stability of the business at risk causing significant interruptions in the operation. This can lead to financial or business losses, oftentimes irreversible.

This way, Allianz Seguros has in place a Business Continuity Management (BCM) process that manages the operation as a whole, identifying potential impacts and risks. Through BCM, it is possible to have a structure to provide resiliency and efficient response capacity to protect the interest of the main stakeholders, the reputation and the brand. It is through this process, which is in line with the guidelines of the Allianz Group, that the company prepares for possible incidents, mitigating risks and impacts in the main business processes.