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Risk management
Our organization has a Risk Management Policythat establishes guidelines for identifying, evaluating, and mitigating potential threats that could affect our operations, reputation, or business continuity. This document supports timely and comprehensive risk management and informed decision-making. It also promotes a culture of risk prevention at all levels of the company, encouraging accountability and transparency in each of the activities carried out.
The well-being and safety of our employees is an essential priority. Our Occupational Health and Safety Policy provides a set of standards and best practices to ensure safe working environments, prevent accidents, and promote the physical and mental health of each employee. This policy also includes regular training, prevention protocols, and contingency plans that are constantly reviewed and updated, reaffirming our commitment to creating a healthy and responsible workplace.
Risk management at Fibra Danhos is a comprehensive process that involves all our employees and senior management, with the goal of ensuring that risks are identified and addressed appropriately. For each risk detected, mitigation strategies and action plans are created to minimize its potential impact. Additionally, we constantly monitor the application of these plans, adjusting measures when conditions change, to continuously improve and strengthen the company's resilience.
Another component of our institutional risk assessment process, in keeping with best international practices, is to update our double materiality analysis every two years.
Our Technical Committee members possess a wide diversity of experience, which is one of the main strengths Fibra Danhos has in risk management, because it facilitates identification and effective handling of the various risks facing the company. This advantage is magnified by the solid professional background members have in the real estate industry, which ensures that strategies for addressing and mitigating risk are aligned with industry best practices.
Proper management of the risks to which the company is exposed is the result of a good governance structure that integrates and aligns all areas under a common focus. With this we can decide not only what risks we face, but also the means to mitigate them. At Fibra Danhos, we have clearly defined roles and responsibilities for every position and are responsible for managing these risks, thus ensuring a prompt and effective response to any eventuality.
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Analysis of material risks
Under our comprehensive approach to risk management, we are able to identify and prioritize factors that could significantly impact our operations, reputation, and results. Through a systematic and continuous process, we monitor elements within and beyond the company to anticipate threats and opportunities. We then design specific mitigation plans that strengthen our adaptability and resilience.
Every two years, based on a double materiality analysis, we prepare a risk map, identifying and assessing current and future exposures to determine their potential negative impacts and thus decide on measures to eliminate or minimize material risks.
This holistic approach makes material risk analysis a key tool for strategic decision-making, ensuring that we fulfill our commitments, protect our stakeholders, and generate long-term value.
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Having identified potential risks, we then go on to examine their possible impact and the control measures to be taken, as shown below.
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| RISK | POSSIBLE IMPACT | CONTROL MEASURES |
|---|---|---|
| Cybersecurity | Unauthorized access to confidential or sensitive business information could violate privacy rights, causing stakeholder distrust, lawsuits against the company or sanctions from the authorities. |
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| Community engagement | Possible deterioration of the relationship with communities, with loss of social license could lead to complaints intending to cause a shutdown of operations. |
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| Natural disasters and climate change | Exposure to telluric movements and location in areas of critical water stress could lead to operational stoppages, fines and penalties, increased operating costs and structural damage to buildings. |
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| Emissions | Failure to take the pertinent measures regarding GHG emissions from our operations could generate legal sanctions and increased operating costs. |
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| Energy | Addressing energy transition requirements could increase operational costs. |
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| Water | Consuming water in critical stress zones could foster stakeholder dissatisfaction with the lack of water leading to the shutdown of operations or a loss of reputation. |
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| Talent recruitment and retention | Shifts in labor trends could increase employee turnover, which could mean lower productivity. |
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| Technology and innovation | Failure to invest in technology could limit our ability to innovate and remain relevant in the market, reducing the attraction customers and tenants and increasing complaints. |
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| Tenant relations | Lack of effective communication and respectful treatment can generate mutual distrust, reducing retention in the long term. |
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| Human rights | The lack of a human rights due diligence procedure and/or failure to follow it correctly could lead to lawsuits that could result in operational stoppages, loss of credibility, loss of reputation and, therefore, loss of investment opportunities. |
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| Ethics and anticorruption | Corrupt practices violate the law of the states where we operate and also, go against the organization’s Code of Ethics and values; this could cause a loss of stakeholder confidence and sanctions or lawsuits. |
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Classification:
- Real
- Real and emerging
- Emerging
- Potential