AEO - Authorized Economic Operator
The Authorized Economic Operator (AEO) is a strategic partner of customs that, after having proven compliance with the requirements and criteria of the AEO Program, will be certified as a reliable low-risk operator and, therefore, will enjoy the benefits offered by Customs, related to greater agility and predictability of their cargo in international trade flows.
- Based on risk management
- Drive compliance through benefits
- Management control x transaction control
- Continuous monitoring of operators
The AEO program consists of the recognition, by Customs and Control Bodies, of the international supply chain operators who demonstrate their ability to manage the risks to which they are exposed.
One of the eligibility criteria, mapping the reliability of the operator, indicates that customs risk management is mandatory. The purposes of this criterion are: Identify, analyze, evaluate, prioritize, manage and monitor events that may affect the objectives related to the criteria of the AEO Program.
t-Risk Software (SaaS) has been available since 2015 to support organizations in managing their risks. It is a tool that assists in the identification, analysis and assessment of risks, in addition to supporting risk prioritization and treatment processes. It complies with the risk management process defined in ISO 31,000. Available in Portuguese, English and Spanish, it increases productivity by up to 80%.
After defining the controls that will be implemented, improved or maintained, to keep risks within the organization's risk appetite, it will still be possible to monitor all projects, tasks and controls through the 5W2H module for project management.
AEO risk management process
After contextualizing the risk assessment to be carried out, the objectives of the risk identification stage are: Determine the risk events, list the causes of the risks and their respective effects (consequences), if the risk occurs.
- Risk events: These are uncertain events on which the applicant has management over and that negatively impact the objectives of the work processes;
- Causes: They are factors that favor the occurrence of risk;
- Effects: They are the negative consequences, impacts and derivations, if the risk occurs.
The objectives of the risk analysis stage are: Analyze the existing and necessary controls, determine the inherent risk through the expected loss and the residual risk after adjusting the controls (simulation). This step will help present the ROI (return on investment) of the indicated controls, demonstrating a reduction in expected loss.
- List the controls: Treatment (procedure) adopted to prevent the occurrence of the causes of the risks and / or minimize their consequences (impact of the effects);
- Inherent risk: By simulating risks without implementing or adjusting controls;
- Residual risk: Simulation of risks after the implementation and adequacy of controls.
The main objective of the risk assessment stage is to support decision-making on which risks should be mitigated and which controls will be indicated. To support this decision-making, it is necessary to determine the efficiency and effectiveness of the existing controls, the proposed controls, and define the investment required to implement them.
At this stage, it will also be possible to validate whether the ROI (return on investment) of the indicated controls is adequate or not, and whether the residual risks are within the organization’s risk appetite.
The objectives of the risk prioritization and treatment stage are: to develop an action plan, projects, and tasks related to the controls that will be maintained, implemented, and/or reduced, taking into account the available investment.
Good planning is essential for the success of any project, and planning is not just about defining goals and creating the desired actions. It must include tracking the details of each task that may influence your organization's risk controls. To support this planning process, we have made the 5W2H module available within the t-Risk software.
The objective of the monitoring and continuous improvement stage is to support the audit process in obtaining information and recorded evidence throughout the risk management process. All projects and their respective tasks are recorded in the software and can be audited at any time.
The indicator comparison panel (KPIs) of the different risk analysis cycles can show the evolution of risks in projects and within the organization.
t-Risk automatically generates customizable risk reports for customs authorities.