Document · NE-GOV-002
Risk management
Risk management is not part of portfolio management. The function independently identifies, measures, and monitors the company's risks and reports directly to the board, not to executive management.
Section 01
The function's mandate
- Identification
- Ongoing mapping of material risks at the portfolio level and for each SPV.
- Measurement
- Use of quantitative and qualitative indicators to assess risk against established risk frameworks.
- Monitoring
- Periodic monitoring of exposures and changes in risk indicators.
- Reporting
- Written quarterly reports to the board and ad hoc reporting of material observations.
- Escalation
- Defined escalation procedures when risk limits are exceeded.
Section 02
Risk limits in practice
Quantitative risk limits include maximum leverage per SPV, a minimum liquidity reserve, geographic and single-tenant concentration limits, and limits on refinancing exposure. The board reviews these limits at least annually.
Section 03
Stress testing and scenarios
The risk management function conducts periodic stress tests of key financial and operating parameters, including interest rate increases, tenant defaults, and prolonged refinancing negotiations. The results inform ongoing discussions with the board and decisions on capital structure and liquidity reserves.
Contact
For investor inquiries, due diligence materials, or discussions about this document.
Contact investor relations+45 81 91 50 00
info@nordicestates.dk
info@nordicestates.dk
