Risk management and compliance

Bouwinvest recognises the importance of a solid risk management framework. The aim of the framework is to identify and mitigate risks, making it possible for the company to achieve its goals more effectively.

Introduction

The developments of the past few years in the financial sector and among asset managers have led to calls for stricter legislation and regulations to prevent a repeat of the various crises. The banking, insurance and pension sectors all now face increased regulation and monitoring by regulatory authorities. As a consequence, institutional investors attach ever increasing importance to internal risk management, compliance, transparency and open accountability to stakeholders.

The various cases of major real estate fraud seen in the past have led to a rethink in the sector. Apart from stricter legislation and stakeholders that have forced the sector to take action, real estate players have realised that this kind of behaviour simply cannot be tolerated. Due in part to new legislation and the sector’s need for internal reform, real estate asset managers are continuously improving risk management, compliance and internal auditing practices to prevent future incidents. The real estate world is changing rapidly and players in the sector are – wherever possible – making use of lessons from the banking and insurance worlds.