Rossi uses a series of tools to evaluate and minimize risks, with the objective being to preserve its capacity to comply with commitments signed with clients and suppliers and to create value for its shareholders.

Cash flow management
Characterized by the intensive use of capital, the real estate business depends upon good management of the inflows and outflows of funds for each phase of the projects in a company’s portfolio. Rossi uses the management system developed by the SAP company to precisely and accurately calculate cash flow at any moment. Thus, it is possible to quickly and dynamically evaluate the company’s future cash position. More than an attribution of the Board of Directors and Executive Management, the concern about the flow of funds is shared by all managers and employees and is part of the company’s culture.

Engineering risks
Each project’s budget, including direct and indirect construction costs, is established and approved before construction begins. The engineering area’s work is based on budget reports and detailed projects to prevent possible cost differences during the construction phase.

Workplace safety
Rossi’s business model is based on the outsourcing of construction manpower. Almost all teams are outsourced, which reinforces the need for strict workplace safety controls. The company constantly reinforces training, using printed materials and audiovisual presentations. The use and other measures seek to reduce the number of workplace accidents, leading fill a decline in the number of hours lost due to accidents from 3.26% in 2005 to only 0.04% in 2007.

Legal risks
The Legal Department is centralized, which facilitates decision-making regarding the acquisition of land. Problems regarding ownership and the approval of projects by government agencies are foreseen, increasing the safe conclusion of deals and assuring control of legal issues arising from investments to form our land bank.