Risk and risk management
Owning and managing properties means that operations are exposed to
a variety of risks, both internal and external – or to uncertainties that may affect the Group’s ability to achieve objectives. Castellum therefore works with a regular and structured process to identify and actively monitor the full range of financial and non-financial risks that the Group encounters or has to take on. 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 ability to achieve company goals. Risk management involves a structured decision-making process with the aim of balancing the desire to limit uncertainty with achieving the objective. In order to assess the effect of identified risks, an internal risk rating is carried out where each risk is assessed, both from the perspective of impact and probability. This process determines whether the risk should be further monitored (Monitor), corrected (Focus) or handled through the standard review and management (Review).
To facilitate risk management, Castellum has chosen to classify risks into the following categories:
- External environment – risks due to the influence of external factors and events
- The real estate portfolio – risks associated with the ownership of Castellum’s real estate portfolio
- Employees – risks associated with recruiting, training and retaining engaged and competent employees
- Management – risks associated with everyday management of Castellum’s real estate holdings
- Financing – Castellum’s financing risks
Increased focus on risk area since latest previous year.
Reduced focus on risk area since previous year.
Unchanged focus on risk area since latest previous year.