Company: BBD
Filing Date: 2025-03-31
Form Type: 20-F
Source: 0001292814-25-001244
Chunk: 71

Company: BANK BRADESCO
Filing Date: 2025-03-31
Form: 20-F
Item: Item 3
Chunk 71
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 the El Niño phenomenon. Global climate change and the increasingly frequent occurrence of extreme weather events bring relevant risks to the Brazilian agricultural production, which in 2022 accounted for approximately 5% of Brazilian GDP, according to the Brazilian Institute of Geography and Statistics (IBGE). Climatic events such as the El Niño, for example, when they occur intensively, such as between 2015 and 2016, lead to changes in rainfall and temperature regimes with adverse consequences for grains and sugarcane, for example. There was a reduction of 11.3% in the production of Brazilian grains and of 5.8% in sugarcane in the 2015-2016 harvest. As agribusiness makes up a relevant portion of our investment portfolio, our result may be negatively impacted by events of this nature, which are difficult to anticipate and to measure their effects.
 
3.D.20.11 Reputational risk
 Reputational risk is represented by the loss of credibility before clients, counterparts, government agencies, the market or the community, as a result of undue acts and improper actions and behavior.
 
3.D.20.11-01 Damage to our reputation could harm our business and outlook.
 We are highly dependent on our image and credibility to generate business. A number of factors may tarnish our reputation and generate a negative perception of us in the eyes of our clients, counterparties, stockholders, investors, regulators, business partners and other stakeholders. Such factors include noncompliance with legal obligations, making irregular sales to clients, dealing with suppliers with questionable ethics, unauthorized disclosure of client data, inappropriate behavior on the part of our employees, third-party failures in risk management, and relationships with stakeholders whose practices are not aligned with ESG principals, among others. In addition, certain significant actions taken by third parties, such as competitors or other market participants, may indirectly damage our reputation with clients, investors and the market in general. If we are unable, or are perceived to be unable, to properly address these issues, we may be subject to penalties, fines, class actions and regulatory investigations, among other things. Reputational damage before clients, investors and other stakeholders may have a material adverse effect on our business, financial performance and prospects.
 
3.D.20.12 Model risk
 The model is defined as the information that supports decision-making processes, derived from any method, hypotheses, techniques and quantitative system or approach, among others, that applies statistical, economic, financial or mathematical theories to transform