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Managing our risks

The Group is subject to a wide variety of risk factors arising from the overall economic environment, demand and supply within the commercial real estate sector, international debt and equity markets as well as our own properties, tenants and suppliers.

The identification and mitigation of different forms of risk is at the heart of our operating framework.We implement an integrated method of risk management which is based on our cautious, analytical approach.

Drivers of risk appetite and mitigation measures

Drivers
Alignment of interests with shareholders
Conservative attitude to capital deployment
Integrity of business conduct
Mitigation
Focused market expertise
Analytical rigour
Detailed formal procedures and policies

Managing the risk

Procedures, people
and internal controls
  • High level risk assessment framework
  • Extensive documentation to support decisions
  • Defined performance indicators with sensitivity analysis
  • Strict approval requirements
  • Qualified and experienced personnel with specific roles
  • External review of key controls
Policies for highlighting
and controlling risk
  • Investment return benchmarks
  • Regular monitoring of business plans
  • Development appraisal parameters
  • Debt leverage, covenant compliance and liquidity limits
  • Occupancy targets
  • Leasing objectives and tenant selection
  • Transparent disclosure to all parties
Operational committees
for managing risks
  • Executive weekly
  • Leasing co-ordination weekly
  • Investment weekly
  • Asset management weekly
  • Financial management weekly
  • Environmental policy bimonthly
  • Corporate responsibility quarterly

Oversight

  • Board Meetings
  • Audit Committee
  • Remuneration Committee
  • Executive Committee