A Brazilian family-owned business (FOB) received financing from an international investor. The investor approached Cefeidas Group with a request to appraise the FOB’s corporate governance practices.

Family members of the business had expressed interest in becoming professionally involved in corporate matters. In order to professionalize the company and create value – while allowing the family to stay involved – the FOB needed advice on succession planning, setting up a board and creating structures and policies. Cefeidas Group experts reviewed the company’s corporate governance activities, and in visits to Brazil, conducted face-to-face interviews with key company executives, external advisors, shareholders and stakeholders. Experts also completed an extensive analysis and review of corporate documents.

With this information, Cefeidas Group experts made a series of recommendations based on international best practice in corporate governance. Recommendations were also tailored to ensure both the client’s needs and the requirements of the international investor. The main areas of analysis focused on the company’s commitment to good corporate governance, its board structure and functioning, the control environment, transparency and disclosure and the treatment of minority shareholders. The company, with the help and guidance of Cefeidas Group experts, is now in the process of implementing corporate governance practice recommendations based on a two-year improvement plan. Once fully implemented, a board will have been created, policies established, a succession plan developed and control structures and procedures strengthened.

A leading Paraguayan financial institution experienced a series of changes to its ownership. When a foreign development bank confirmed a multi-million dollar investment, an assessment of the financial institution’s existing corporate governance practices was requested. The financial institution hired Cefeidas Group to ensure the institution’s approach was compliant with a new Paraguayan regulation and in line with international best practice.

Prior to the assessment, the financial institution had actively implemented a number of corporate governance practices. Cefeidas Group analyzed a series of documents on the institution’s corporate governance-related policies and practices. It also conducted a number of interviews with relevant parties. This process allowed the financial institution’s team to review its practices and processes. Once a number of key improvement areas were identified, Cefeidas Group recommended concrete measures to ensure advancement and benchmarking with industry. As the institution’s team was involved in all stages of the assessment, the exercise not only ensured compliance but also facilitated institutional learning.

With uncertain financial markets in Latin America, a strong internal control environment mitigates risk. To do this, businesses should have internal controls in place such as board monitoring, robust audits and policies, and a balance of power between Chairs and CEOs.

Development financial institutions regularly finance private small- and medium-enterprises (SMEs). As part of their service, DFIs often provide training focused on building SMEs’ capacity around corporate governance. A DFI hired Cefeidas Group to provide corporate governance and risk management training to private SMEs operating in Latin America.

Held in Paraguay, the Cefeidas Group training was both practical and interactive. Targeted at compliance officers across the region, it used adult-learning techniques to ensure participants turned their knowledge into practice. Discussions, team-based case studies and Q&As meant participants learned about corporate governance practices, internal controls and how best to implement these.

Cefeidas Group has also provided training and knowledge management on internal controls and other corporate governance topics to the World Bank Group, Inter-American Investment Corporation (IIC), and the Latin American Private Equity and Venture Capital Association (LAVCA). We are internationally recognized as the leading experts in corporate governance capacity building in Latin America.