Risk Management: Vonovia in a Stable Position
Like any success-oriented and responsible company, we engage in comprehensive risk management. Organizationally, this function is assigned directly to the CCO, who regularly monitors its effectiveness. Vonovia’s risk management system is based on an integrated, five-pillar management approach.
In the course of annual reporting, Vonovia provides a detailed explanation of its risk situation to external parties. In the spirit of transparency, the Management Board publishes a qualified list of “top 10 risks.” Overall, Vonovia is in a stable position and does not consider itself exposed to going concern risks (see AR 2016, Structure and Instruments). 102-11, 102-15
Vonovia also monitors and evaluates any potential risks that could arise from climate change. Most of Vonovia’s properties are not located in areas that are exposed to particular risks arising from the potential impact of climate change. Nevertheless, Vonovia proactively performs regular checks on building safety, taking all of the building regulations into account in order to ensure that climate change and its implications do not give rise to any direct risks for Vonovia. In addition, Vonovia takes out extensive buildings insurance coverage to protect itself against potential damage. The company has a separate department for mining subsidence damages that addresses all issues relating to the consequences of mining. 201-2