Appropriate governance structures for managing property-related risks
The corporate failures of the past few years have led to understandable investor demands and regulatory requirements for increased levels of governance and financial transparency. Property, with the potential to be a substantial asset or liability on any corporate balance sheet, cannot avoid this increased scrutiny. Changes to accounting rules, stamp duty, corporate governance and environmental regulations have moved property up the business agenda in recent years. As a result, it is absolutely paramount for your company to actively manage property-related risk.
The first step to effectively mitigate risk is to understand what you are up against. You first need to review the range of risks that you are confronted with. These can take many forms:
Financial risk – Financial risk includes any activities that could negatively affect your organisation’s financial health.
Brand risk – Brand risk includes any activities that could negatively affect the market position of your organisation.
Health and safety risk – Health and safety risk can affect anyone who comes in contact with your organisation’s property including, but not limited to, customers, employees, service providers and the general public.
Operational risk – Operational risk includes anything that would impede the successful execution of property related objectives.
For further information, download our publication Appropriate governance structures for managing property-related risks. (PDF, 178KB)