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). Castellum conducts an annual risk survey in which all the company’s risks are assessed based on likelihood, impact, priority and development. Short- and medium-term risks are analysed for a period of up to 10 years.

Over the last several years, Castellum has also worked on analysing various future climate-related risks and possibilities over the long term up through 2050.

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 asset portfolio.
• Operational risks – risks associated with routine administration of Castellum’s property holdings.
• Sustainability and climate risks – risks associated with the 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.