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Opportunities and Risks

Risk Management Structure and Instruments

The market environment and the overall statutory/regulatory conditions to which Vonovia is subject are constantly changing. Vonovia is also developing on an ongoing basis with the implementation of the strategy and the associated business activities. This means that new opportunities and risks arise on a regular basis, and that the extent of existing opportunities and risks can change at any time.

As a result, Vonovia has implemented a comprehensive risk management system that ensures that all of the risks that are relevant to the company can be identified, evaluated and managed. This reduces risk potential, secures the company’s survival, supports its strategic further development and promotes responsible entrepreneurial action.

Risks are defined as possible events or developments that could have a negative impact on the company’s expected economic development and, as a result, could lead to a negative deviation from the short-term plans (budget and forecasts) and the company’s medium-term plans (five-year plan).

Opportunities are possible events or developments that could have a positive impact on the company’s expected economic development.

The risk management system was enhanced in the 2021 fiscal year, with a simulation model being added to calculate the company’s risk-bearing capacity. An audit of our risk management system (RMS) was also conducted in accordance with the audit standard “Principles for the Proper Performance of Reasonable Assurance Engagements Relating to Risk Management Systems” (IDW AsS 981) of the Institute of Public Auditors in Germany for the effectiveness period from July 1 to December 31, 2021. The audit was completed successfully in January 2022 and looked at the appropriateness, implementation and effectiveness of Vonovia SE’s risk management system.

Vonovia’s risk management system is based on an integrated five-pillar risk management approach.

5 Pillars of Risk Management at Vonovia