Risks related in-house management through local business units

Corio aims to add value by managing its investments in-house. Since real estate is a local business, Corio has chosen for a decentralized organisation structure. In-house management, however, entails the following risks:

  • In control risk: in this risk management section we describe the checks, balances and best practices that we have implemented across our entities.
  • Risk of local non compliance of with rules and legislation:  We manage the compliance risks through our group wide and local policies and procedures (for example screening of business relations and employees, dilemma training, whistle blowers code, code of conduct, etc.) and the continuous training on and effectiveness monitoring of these policies.
  • Efficiency risk: Corio believes that our in-house centre and letting management will add value and have a beneficial effect on the operational results.
  • IT risks: During 2009 a strategic programme with a 5-7 year horizon was started with the objective of establishing the ideal future IT structure for Corio. Following the conclusions and further developments of this programme, the business units and holding are implementing their systems locally in order to align them with their business requirements. The business units, supported by the centralised Information Management department, are responsible for an efficient and effective implementation. An overall programme management office and steering committee monitor the business unit’s progress, costs against approved budgets and ensure that the outcomes remain in line with the conclusions of the strategic programme.
  • Tax risks: Corio constantly monitors significant risks concerning the company’s tax position. Under local legislation in the Netherlands and France, Corio has obtained the status of tax-exempt investment institution. The retention of tax-exempt status and compliance with local tax regimes is continuously monitored.
  • Critical mass risk & Expertise risk: In order to have an efficient local BU, sufficient critical mass per home country is required. Therefore this risk is assessed in the asset allocation process, prior to entering new markets. If Corio as a local player does not have sufficient market share, it risks not being able to attract  the right tenants and suppliers, as well as talented staff with the right skills, expertise and work ethics.

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