Page 36 - Minerva Foods Sustainability Report 2016
P. 36

2016 Sustainability Report
Two management models are adopted: the Value at Risk (VaR) statistical calculation system and a system of cal- culating impacts, with ap- plication of stress scenarios.  ese analyses also include the Brazilian and internation- al economic situations and their potential impacts on the Company’s  nancial position.
 e credit portfolio is contin- ually monitored to limit the Company’s exposure. Credit risk is therefore diluted through a detailed analysis of customers’  nancial statements, an internal customer risk classi cation sys- tem and consultations of credit score agencies.
connected to
All cattle acquired are in- spected by veterinarians from the Federal Inspection Service (Serviço de Inspeção Federal – SIF) at the Ministry of Agriculture, Livestock and Supply (MAPA). In Paraguay, Uruguay and Colombia, cat- tle acquisitions are also sub- ject to supervision by the re- spective health authorities.
Hedge policy
Hedging takes into account the Company’s two main risk factors: the exchange rate and live cattle. Based on identi - cation of these exposures, the Treasury works to neutralize and/or mitigate risks, follow- ing limits determined by the Board of Directors.

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