Brazil's oil and gas giant Petrobras (and currently immersed in a major corruption scandal) has decided the appointment of a director of governance, risk management and compliance mainly to ensure risk mitigation and ensure the repeat of situations of fraud and corruption, according to a release from the corporation.
”Petrobras' Board of Directors approved at a meeting today (25 Nov.) the appointment of a director of Governance, Risk Management and Compliance, charged with ensuring process compliance and risk mitigation, including the risk of fraud and corruption, and therefore guaranteeing compliance with laws, norms, standards and regulations, including the rules of the Comissão de Valores Mobiliários (CVM - Brazilian Securities and Exchange Commission) and U.S. Securities and Exchange Commission (SEC)”, said the official communiqué.
Likewise in addition to participating in the decisions of the Executive Board, the director of Governance, Risk Management and Compliance will also be responsible for sanctioning beforehand the governance, risk management and conformity aspects of matters to be submitted to the Board.
The creation of this new position will not increase the number of Board Members, since it will replace that of International Executive director.
The Board of Directors will choose the new director from a shortlist of three Brazilian professionals, pre-selected by an executive recruitment company with an established reputation on the market.
The Governance, Risk Management and Compliance director will take up office for a three-year term, with renewal option, and can be voted out only by a quorum of the Board of Directors, including at least one Board Member elected by minority or preferential shareholders.
Over the next 60 days, Petrobras will detail the structural characteristics and operating model for the new position, as well as links to the activities of the International business section, concludes the release.