Achieving Kungsleden’s required return, which is 15 per cent on equity, necessitates taking some risk. There is a variety of tools available for desired risk control to continuously identify, assess and limit risk.
Risk and risk minimisation is an integrated component of Kungsleden’s business model, which focuses on continuously enhancing the composition and quality of the portfolio, with the aim of improving its risk-adjusted returns. At any time, Kungsleden will endeavour to have the lowest aggregate risk possible.
Risk assessment is a regular yearly process within Kungsleden. Risk assessments are conducted in the form of internal valuations and also include action-plans to reduce risks.
In approximate terms, risks and opportunities can be divided into two segments—changes in cash flow and changes in value. The largest financial risk is access to funding.
For more detailed information about our risks and opportunities we refer to our most recent financial reports.