Taking risks is an inherent part of doing business. Therefore, risk management is an essential part of the Heijmans culture, corporate governance, strategy development and operational and financial management. Employees manage and mitigate risks on a daily basis, as part of their roles and responsibilities. Heijmans is prepared to take certain risks associated with the performance of our core activities because we are sufficiently equipped to manage them successfully within the limits of our expertise as determined by the Executive Board in consultation with the group board and under the supervision of the Supervisory Board. These limits ensure that the actions of one person do not lead to disproportionate risks or missed opportunities for the entire company. Heijmans’ risk management focuses on supporting sustainable value creation in the long and short term. It is designed to provide reasonable assurance that Heijmans achieves its objectives by integrating management controls in day-to-day operations, ensuring compliance with legal requirements and the integrity of the company’s financial reporting and related disclosures. Heijmans’ risk framework is in line with the Dutch Corporate Governance Code.
We face risks and uncertainties due to external and internal developments. Current external developments include the effects of geopolitical conditions in the field of energy and the availability of materials and products, as well as increasing regulations related to nitrogen and other emissions, and their impact on nature and the living environment. At the end of last year, we saw the cancellation of the construction exemption related to nitrogen emissions. The risk landscape is becoming more volatile. Risks are becoming more complex and increasingly interconnected, and can therefore have a greater impact when they occur. In addition, we are seeing the growth of citizen involvement in social issues (including pollution of the living environment) and social pressure for sustainable and socially responsible business in the Netherlands.
The transition of the sector is marked by a growing focus on sustainability, technology and digitalisation, scarcity of personnel and materials, and rising cybercrime. To keep up with the dynamics and rapid developments in the construction world, Heijmans is developing new initiatives internally and making investments in the areas of sustainability, industrialisation and digitalisation. These developments are creating opportunities, but also bring new risks and therefore impact our risk profile and risk appetite.
To remain in control, it is important to continue taking a ‘manageable’ scope of risks. Heijmans has set up a risk management process to manage these risks and seize opportunities. Our risk management contributes integrally to realising our strategic ambitions and achieving our goals, and determines the success of our company.