Property ownership and management exposes operations to a number of internal and external risks, or uncertainty factors that could impact the Group’s ability to achieve its overall objectives for growth. Castellum’s risks are divided into six overall categories: business environment, strategic risks, operational risks, sustainability, people and financing. Castellum therefore works continually, in a structured manner, to identify and actively monitor financial and other risks that operations encounter or are faced with. The Group’s risk management involves a structured process of decision-making with the aim of establishing a balance between the desire to limit uncertainty or risk and the task of generating growth and shareholder value.
Risks, exposure and risk management
Castellum defines risk as an uncertainty factor that may affect the company’s ability to achieve its objectives. Risk management aims at balancing the desire to limit risk and achieving objectives. In order to assess the effect of identified risks, an internal risk rating is conducted in which each risk is assessed, from the perspectives of impact and probability. This process
determines if the risk should be further monitored (Monitor), if actions should be taken (Focus) or if it can be handled through standard review and management (Review).
To facilitate risk management, Castellum has chosen to classify risks into the following categories:
• Business environment — risks due to the influence of external factors and events
• Strategic risks — risks associated with reputation or the ownership of Castellum’s property portfolio
• Operational risks — risks associated with routine administration of Castellum’s property holdings
• Sustainability risks — risks associated with environment, corporate responsibility and/or liability risks
• People — risks associated with our employees and the people in and around our properties
• Financial risk — risks in Castellum’s financing and reporting