May 18, 2022
At Ecopetrol, risk is understood as the effect of uncertainty on the fulfillment of the company's objectives, considering the effect as the positive, negative or both (threats and opportunities) deviation from forecasts.
Integrated risk management allows Ecopetrol to adequately support risk-based decision-making, using a common language and tools that allow it to act in a timely and effective manner under the uncertainty associated with the achievement of objectives.
Integrated risk management is part of the Integrated Risk Management System based on the ISO 31000 standard, the Code of Good Governance, the Code of Ethics and Conduct, the Comprehensive Policy and the Compendium of Good Practices for Comprehensive Management and Control. Processes, among others. In turn, there are other regulatory references applicable to the specific management of the risks managed in the company, all of them in alignment with the Integrated Risk Management System.
Integrated Risk Management System
The Integrated Risk Management System (IRS) is defined as the set of principles, reference framework and process that allow the organization to manage the effects of uncertainty on the fulfillment of its objectives, to maximize opportunities and assist in setting strategies and making informed decisions. This system is led by the Corporate Vice Presidency of Compliance through the Corporate Integrated Risk Office and is supervised by the Board of Directors through the Audit and Risk Committee of the Board of Directors.
The principles of IRS provide guidance on the characteristics of risk management in the Ecopetrol Group.
The reference framework contains the provisions to integrate risk management in the activities and functions of the company.
The risk management cycle contains five stages that guide the systematic activities to be carried out:
In Ecopetrol risks are managed at the strategic, tactical, and operational layer:
Ecopetrol defined emerging risks as those that are expected to have a long-term future impact on the company (3-5 years and beyond) or in some instances, they have already begun to impact Ecopetrol. Emerging risks are considered those that meet some of the following characteristics:
Click on the next links for more details about the emerging risks of Ecopetrol: