Risks and risk management
Hemsö is exposed to various risks that may affect the company’s future operations, costs and results. Risks and opportunities are continuously identified and managed within the operations. The risk factors are categorised as strategic, operational and financial risks.
Strategic risks are events or situations that could affect Hemsö’s long-term ability to achieve its targets. These are mainly external factors such as macroeconomic and political risks, industry and market risks and brand risks.
These types of risks and their management are continuously evaluated by management and the Board of Directors and through regularly conducted market and external analyses. Strategic measures to reduce the company’s exposure are established in the annual strategy plan.
Operational risks refer to events or situations that, within the framework of the established strategy, may arise in the day-to-day operations and thus affect Hemsö’s results. This largely involves risks linked to the organisation’s processes, working methods and competence.
These risks are identified and evaluated on an ongoing basis and managed in the company’s business plan and budget process. Measures and any changes to the risk profile, or newly added risks, are continuously evaluated.
Property operations require access to financing, which Hemsö provides through funding in both the banking and capital markets. Through the loan portfolio, we are exposed to financial risks.
Although financial risks are manageable in a stable economy, unforeseen disruptions in the property and credit markets can quickly change the conditions.
The significance of the risks for the Group’s earnings in both the short and long term means that risk management is specifically regulated in a financial policy established by the Board of Directors.
More detailed information can be found in Hemsö’s Annual Report on pages 73-80.