This website uses cookies to remember your personal preferences and gather statistics. Click here for more information about cookies.

Yes, I agree No, I do not agree X

Risk management

The goal of risk management is to identify and mitigate risks, which in turn makes it possible for the company to work towards its goals more effectively. The risk management department uses a risk management cycle to determine how targets are defined and achieved.

This annual report includes a description of the risk management of the management organisation (Bouwinvest). In addition to these corporate risks, additional risks, definitions and control measures are set for the real estate portfolio. These risks are described in Bouwinvest's investment plan and the fund plans of each of the Dutch sector funds, and are reported in the respective quarterly and annual reports.

Bouwinvest recognises the following risks for the management organisation:

• Continuity

• Legal and liability

• Integrity

• Fiscal

• Quality

• Funding

• Key people

• Reputation

Risk matrix



Control measures

Continuity risk

The continuity risk is the risk that the management organisation can no longer meet the terms of its agreements with bpfBOUW, other clients, its own employees and the organisation

·  REIM business plan


·  Framework letters


·  Investment plans and fund plans


·  Annual plans business units and departments


·  Reporting process


·  Annual ISAE 3402 type II audit


·  Business Continuity Plan


·  Service Level Agreements with outsourcing partners


·  Data security policy (COBIT)

Integrity risk

Integrity risks are associated with non-compliance with laws and regulations (such as fraud and cyber crime) or transparency requirements of Bouwinvest, its employees or any party with whom Bouwinvest is conducting business

The Compliance policy and measures are explained in the next section

Quality risk

This is the risk that the management organisation delivers poor quality, as a result of which Bouwinvest is unable to meet the terms of its agreements with its clients

·  Framework letters


·  Investment plans and fund plans


·  Investment Committee


·  Business partner due diligence


·  Internal (process) control framework in accordance with ISAE 3402 type II


·  External auditor


·  Procedure for business incidents


·  Pricing & Valuation Committee

Key people risk

This is the risk that the organisation does not have employees with the right skills and qualities

·  Transparent culture and remuneration policy


·  Measures to ensure high levels of employee satisfaction


·  Key position succession and promotion policy


·  Building and maintaining reputation on the employment market  

Legal and liability risk

The risk of threats to the legal position of the organisation, including the risk of the possibility that contractual provisions cannot be enforced or are not correctly documented

·  Internal Legal Affairs department


·  External specialist law firms


· Various corporate and asset insurance policies (professional and directors liability)


·  Risk checks on main assets


·  Insurance manual

Fiscal risk

This is the risk that the organisation’s fiscal position is determined incorrectly, as a result of which the current and deferred tax (position) is depicted incorrectly

·  Internal Tax Affairs department


·  (Structural) external involvement tax specialists (also evaluative role)


·  Tax Policy Principles

Funding risk

The risk that the funding position is not adequate and/or safeguarded, due to the fact that the growth of the organisation’s assets under management is not covered by the addition of new capital from investors

·  Active approach to attraction of funding, which is the role of the Investor Relations department


·  Clear annual funding statement in the fund plans


·  Funding part of investment proposal

Reputation risk

In the event that one of the above-mentioned risks occurs, the occurrence of said risk is inevitably related to (some) measure of reputation damage

· Transparent and frequent communications with shareholders and clients


·  Integrity Risk Analysis

Monitoring and  reporting

The Board of Directors continuously monitors a wide array of risks in Bouwinvest's various activities. To support this monitoring and to optimise risk transparency, the risk controller produces quarterly risk reports. In 2016, there were three types of quarterly risk reporting:

  • Risk report for portfolio bpfBOUW

  • Risk report as part of fund reports for AIF funds

  • Business incident reports

Both the bpfBOUW portfolio and the fund risk reports were revised in 2016. This revision resulted in more transparent and compact reports on both aggregation levels. On top of that, the reporting on bpfBOUW's portfolio has been tailored to the risks that are identified in the pension fund’s risk charter. The format for business incident reporting remained unchanged in 2016.

  • Share this article