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 adapting to this environment by developing its strategy and, within this context, its business activities on an ongoing basis. Vonovia also reacts to ESG influences from a wide variety of stakeholders by adjusting its corresponding ESG targets. These changes mean that additional 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 (and to the environment and society at large) 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.
In order to harmonize risk management within the Vonovia Group, Deutsche Wohnen adopted Vonovia’s risk management system at the end of 2022 as part of its integration into the Vonovia Group.
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). Any deviations from the company’s ESG objectives also pose risks to its economic development.
Opportunities are defined as possible events or developments that could have a positive impact on the company’s expected economic development and, as a result, could lead to a positive deviation from the short-term plans (budget and forecasts) and the company’s medium-term plans (five-year plan). Deviations from the company’s ESG objectives can also give rise to opportunities. Opportunities are not quantified for internal management purposes.
Vonovia’s risk management system is based on an integrated five-pillar risk management approach.