In 2015, Bouwinvest recognised the following management risks:
Continuity
Integrity and Compliance
Quality
Legal
Fiscal
Continuity
The continuity risk is the risk relating to the continuity of the management organisation, as a result of which the company can no longer meet the terms of its agreements with bpfBOUW and other clients. This risk is mitigated by closing service level agreements with outsourcing partners, by drawing up and maintaining a business continuity plan and by the application of an information security policy.
Integrity and Compliance
Integrity and compliance risk covers risks related to the failure to comply with laws, regulations or transparency requirements by either Bouwinvest, any member of the Bouwinvest organisation or by any party with whom Bouwinvest is conducting business. This risk is primarily mitigated by having a clearly articulated governance structure and by providing Bouwinvest employees with a clear set of rules of conduct. On top of that, several procedures stipulate certain compliance activities to minimise the risk of integrity issues for Bouwinvest or any of its investors.
Quality
The quality risk is the risk that the management organisation is unable to deliver sufficient quality, as a result of which Bouwinvest is unable to meet the terms of its agreements with bpfBOUW and other investors in an adequate fashion. This risk is mitigated through the use of an internal (process) management framework in accordance with ISAE 3402, which is tested annually by an external auditor. In addition to this, a Corporate Social Responsibility action list is monitored and a business incidents procedure is in place.
Legal
As an investment manager, Bouwinvest and its subsidiaries engage in a wide array of contracts and legal obligations. Legal risk is the risk that an external party holds Bouwinvest liable for compensation for damages that Bouwinvest or a related party may have caused. To prevent any of these legal liabilities, the Bouwinvest Legal department is involved in due diligence for commitments made by Bouwinvest or any of its subsidiaries. If necessary, external council is brought in for highly specialised knowledge or for litigation purposes.
Fiscal
In a capital-intensive sector like real estate investment tax is an important part of investment decisions. In conducting business there is always a risk of paying either too much or too little tax. Both, but especially the latter, can have considerable financial and legal consequences. Guided by our tax manager and international tax lawyers, Bouwinvest optimises its activities fiscally to avoid over-taxation, while staying well within legal boundaries.