The growing complexity and dynamics of the current situation has increased the level of risks companies face. For this reason, managing risk has become increasingly important. Our business model is exposed to various risk factors, both internal and external, so we begin by identifying the main risks that might affect our operations and then create management systems to mitigate them.
The following are some of the primary risk factors we have identified in our operations:
| Category | Risk |
|---|---|
| Operating | Our business would be adversely affected if a significant number of tenants or any of our main tenants were unable to meet their contractual obligations. |
| Our properties are concentrated in the retail and office segments in Mexico, and our business could be adversely affected by an economic slowdown in either of these sectors or in any segment in which we participate. | |
| Financial | Our development and construction activities would be affected by our inability to obtain financing under favorable terms, or financing in general. |
| We could face losses on dollar-denominated leases. | |
| High interest rates in Mexico could increase our financial costs. | |
| Regulatory | We cannot predict whether possible changes in government policy or the economy could affect operations of the trust. |
| Some of the more ambitious changes in public policy and legislation promoted, passed and/or implemented by the new federal administration could affect our operations. | |
| Climate Change | Our operation costs would rise with increased rainfall, drastic temperatures, earthquakes and other natural disasters. |
| Our operations would be affected by increased water stress in Mexico. |
For more information about these risks, see the Annual Report we filed with the Mexican Stock Exchange.
Audit Committee
The highest governing body to monitor the mitigation measures and proper risk management.SEE MORE
Process-and risk-based analysis
As part of our improvement of administrative processes, Fibra Danhos is working on the traceability of risk prevention processes through the following steps:
To do this, we involved the heads of various areas in identifying, evaluating and implementing actions to reduce, avoid, remediate or mitigate the risks detected during the Fibra Danhos process planning and operation phase, through a methodology that we will be developing, and which will serve as a guide.
ESG Risks
For Fibra Danhos, the materiality study we conducted in 2021 has been the primary mean for identifying the most relevant risks for our company and for our stakeholders.
As established in our Environmental and Sustainability Policy, we assume environmental responsibility from the highest level of responsibility in our Declaration on Prevention of Occupational, Environmental and Quality Risks, which encompasses the priority goals of satisfying customers, our human team and society, delivering results and creating value, among others.