CSN operates in a globalized and increasingly complex market and is therefore exposed to several risks that may affect its performance and strategies. In order to better monitor these risks, the Company has set up a Corporate Risk Management Department, subordinated to the Financial Department, whose main responsibilities include mapping and evaluating strategic, operational, financial and regulatory risks. This activity is carried out based on methodologies established by the ISO 31.000 guidelines and COSO framework. To this end, CSN has consolidated its most important risk factors, evaluating their probability of occurrence and potential impacts on the organization. Based on this mapping, revised every six months by the Corporate Risk Management Department, Company areas and business units assume the responsibility to implement the action plans related to the most relevant risks to eliminate or reduce them to acceptable levels and therefore avoid significant impacts.

The Company also has an internal control structure to ensure the integrity and transparency of its Financial Statements. The managers of each process are responsible for carrying out tests and implementing improvements in Company controls, when necessary. These procedures are monitored by the Corporate Risk and Internal Audit areas, in compliance with the Sarbanes Oxley Act (SOx). The Corporate Risk Management Department is also responsible for reporting these evaluations to the top management and Audit Committee.

The Financial, Treasury and Controllership Departments also assist in managing financial risks by evaluating risk exposure and using financial instruments that guarantee the adhesion to the Company’s internal policies, reflecting the Company’s liquidity parameters and evaluating credit and market risks.

For further information, please read the Reference Form* of the Company.