To govern supplier relations, Banrisul uses the Bidding Process Law (Federal Laws 8,666\/93 and 13,303\/2016), as well as other related federal and state laws. It also uses the Internal Regulations on Bidding Processes and Contracts (RILC, in Portuguese), which is published on the Institution\u2019s transparency website. The transparency website also features other documents governing supplier relations, including the Supplier Relations Manual (which governs supplier behavior in bidding processes and the contracting of Banrisul Group companies) and Banrisul\u2019s Supplier Manual (created to help Banrisul\u2019s suppliers know and understand the procedures that the Company uses in its business relations for the acquisition of goods and services).<\/p>\n\n\n\n
For the measures taken to manage the topic and its related impacts, there is not a specific position within the Organization to manage these impacts. They are mitigated throughout the supplier management chain, with different levels in charge of different tasks. For example, the Contract Management department is responsible for checking the documentation proving the bidder\u2019s technical qualification in a bidding process; after the bidder becomes a contractor, the Contracting department is responsible for checking if the supplier has any impediments and if it has all the necessary certificates of good standing, among other things.<\/p>\n\n\n\n
The measures to prevent or mitigate potential negative impacts include the existence of an Outsourcing Supervision department, which checks if the labor rights of outsourced workers that provide services for Banrisul are being respected. In order to mitigate impacts, Banrisul also created the Sanctioning Processes department, which is responsible for conducting administrative sanctioning processes that investigate negative incidents caused by the contractor and impose penalties, if applicable.<\/p>\n\n\n\n
There are measures to face actual negative impacts, such as public contracting regulations, including a tool that mitigates the actual impact of the lack of supply of services or products by the contractor: emergency contracts. This legal provision enables the Bank to hire contractors to provide a portion of a service on an urgent basis, i.e., the services are provided first, and the internal administrative procedures set out in the regulations are completed later, formalizing the contract.<\/p>\n\n\n\n
The Outsourcing Supervision department works to mitigate risks, but there is not yet a routine that provides information on how many defenses of complaints are successful. Regarding the Sanctioning Processes department, more penalties have been imposed over the periods, given that the managing departments understood the importance of effectively monitoring the performance of the contract and should request the determination of responsibility in case of irregularity in the provision of services by the contractor.<\/p>\n\n\n\n
The effectiveness of the actions is felt qualitatively, as previously described, when the managing units are more concerned about describing possible penalties for the poor performance of the contract in the contracting processes; the managing units seek new ways to choose service providers through more robust qualifications in bidding processes; contractors try to anticipate future problems of understanding in requests of performance to the contractor, avoiding the filing of a sanctioning process; and contractors understand the importance of sending labor documentation to be effectively monitored by the Supervision department. The departments responsible for mitigating risks share what they have learned, guiding the continuous improvement of processes so that, given the right\/duty of the managing department to start proceedings to determine responsibility in case of poor performance of the contract by the contractor, the contracting process is moralized, preventing possible market suppliers with bad intentions from participating in contracting procedures. Similarly, the effectiveness of Outsourcing Supervision can be reducing the number of labor complaints in which the Bank is jointly and severally liable.<\/p>\n\n\n\n
| \n Impact <\/th>\n | \n Classification (positive or negative) <\/th>\n | \n Event (potential or actual) <\/th>\n | \n Time frame (short-term or long-term) <\/th>\n | \n Systemic or one-time impact <\/th>\n | \n Irreversibility (high, medium, low - only for negative impacts) <\/th>\n | \n Production chain process or activity that causes impact <\/th>\n | \n Resources \/ stakeholder group impacted <\/th>\n <\/tr>\n |
|---|---|---|---|---|---|---|---|
| \n Reputational impact by association with irregular suppliers and commercial partners (labor and environmental issues) <\/td>\n | \n Negative <\/td>\n | \n Actual <\/td>\n | \n Short-term <\/td>\n | \n One-time <\/td>\n | \n Low <\/td>\n | \n Hiring of suppliers <\/td>\n | \n Shareholders\u00a0and Investors, Employees, Customers, Suppliers, Banrisul\u2019s Operations. <\/td>\n <\/tr>\n |
| \n Reputation problems related to outsourced workers or commercial partners behaviors (such as discrimination and banking correspondents) <\/td>\n | \n Negative <\/td>\n | \n Actual <\/td>\n | \n Short-term <\/td>\n | \n One-time <\/td>\n | \n High <\/td>\n | \n Hiring of suppliers <\/td>\n | \n Shareholders and\u00a0Investors, Employees, Customers, Suppliers, Banrisul\u2019s Operations. <\/td>\n <\/tr>\n |
| \n Operational problems related to outsourced workers strike <\/td>\n | \n Negative <\/td>\n | \n Potential <\/td>\n | \n Short-term <\/td>\n | \n One-time <\/td>\n | \n Low <\/td>\n | \n Services rendered by suppliers <\/td>\n | \n Shareholders\u00a0and Investors, Employees, Community, Customers, Suppliers, Banrisul\u2019s Operations. <\/td>\n <\/tr>\n |
| \n Leakage of confidential information by the supplier <\/td>\n | \n Negative <\/td>\n | \n Potential <\/td>\n | \n Long-term <\/td>\n | \n One-time <\/td>\n | \n High <\/td>\n | \n Services rendered by suppliers <\/td>\n | \n Shareholders and Investors, Customers, Suppliers, Banrisul\u2019s Operations. <\/td>\n <\/tr>\n |
| \n Operational problems due to suppliers not rendering services\/delivering products <\/td>\n | \n Negative <\/td>\n | \n Actual <\/td>\n | \n Short-term <\/td>\n | \n One-time <\/td>\n | \n Low <\/td>\n | \n Services rendered by suppliers <\/td>\n | \n Shareholders\u00a0and Investors, Employees, Customers, Suppliers, Banrisul\u2019s Operations. <\/td>\n <\/tr>\n <\/table>\n<\/div> |