Fortinova’s operations in owning, developing and managing properties involve a number of risks, both direct and indirect, as well as uncertainties that may affect the Group’s ability to achieve the overall growth target. The Group’s management has identified, evaluated, managed and reported the significant risks that are deemed to exist. The Group’s risk management takes place as an orderly process to create an effective balance between limiting risk and creating growth with value for shareholders.
To manage the Group’s significant risks, Fortinova has chosen to classify the risks according to the following structure:
Refers mainly to risks outside Fortinova’s control and to which the Group has to react. Furthermore, these can be macroeconomic risks, crises and changing regulations.
Refers to risks associated with the ownership of Fortinova’s properties, which in turn can be divided into risks relating to the composition of the property portfolio, investments and changes in the value of properties.
Refers to risks associated with the day-to-day management of Fortinova’s properties and its impact on management performance. These can be divided into rental income, real estate costs, sustainability and tax.
Not having access to financing is Fortinova’s single biggest risk. Conditions in the credit market can change quickly, which affects the possibility of short- and long-term financing and financing costs. The risks can be divided into financing risk, interest rate risk and changes in the value of derivatives.
For risks that are deemed to have a relatively high probability of occurrence combined with a relatively large impact on the Group, a person responsible within the Group has been appointed and action plans drawn up. These action plans are followed up continuously by the management team and reported to the Board of Directors.