Risk management
A number of factors affect, or could affect, Pandox’s operations – either directly or indirectly. Pandox works continuously and in a structured way to identify business risks, in order to manage these as consciously and effectively as possible. Good risk management creates the freedom to act and strengthens confidence in the Company among the communities around us.
Business climate
What
External factors such as the economic cycle, new hotel capacity, changed business models, geopolitical events, terrorist attacks and social restrictions – e.g. due to pandemics – can have an effect on the travel market and thus hotel demand.
How
Pandox benefits from a significant flow of information about the business climate thanks to its broad geographical presence and large network of business partners and external advisors. As well as having strong internal capacity for analysis, executive management is able to quickly identify, evaluate and act on risks and opportunities arising in the world around us.
Operations
What
Internal factors such as Pandox’s organisational structure, efficiency and ability to create profitable growth and value for the Company’s stakeholders with a predetermined level of risk. This includes compliance risk, which relates to external requirements, rules and laws.
How
Pandox’s value creation and operational risk are continually evaluated by the Company’s executive management and Board of Directors. Risk is managed by combining advanced business expertise with an organisation that has a clear division of responsibility and monitoring activities. Governance and support are also provided by policies adopted by the Company’s Board of Directors as well as supplementary governing documents and instructions.
Strategy
What
Internal factors that directly impact Pandox’s ability to realise its strategy and achieve its business objectives with a predetermined level of risk, such as access to the specialist expertise that allows the Company to run its business competitively.
How
Pandox’s Board of Directors and management jointly evaluate key strategic risks and examine the need for adjustments to the Company’s strategy on an ongoing basis. Pandox works actively to ensure that the Company is attractive to existing and new personnel.
Sustainability
What
Strategic and operational risk relating to the environment, human rights, social and personal circumstances as well as corruption which, together with the Company’s financial performance, lay the foundations for the confidence of the world around us.
How
Pandox’s first line of defence is the individual employee’s competence and the Company’s basic values. The risks are regulated in various codes and policies adopted by the Board of Directors and are managed through the Company’s active monitoring and control in Operator Activities and in partnership with tenants in Property Management.
Financial
What
External and internal factors such as fluctuating interest rates and exchange rates, inaccurate property valuations, liquidity risk and counterparty risk. This includes refinancingriskassociated with the tenants’ financial performance and status.
How
Financial risk is regulated primarily in Pandox’s Financial Policy. Risks are identified, assessed and managed continuously by Pandox’s executive management supported by the Board of Directors, including in a separate Finance Committee.
Read more about Pandox's financing here.
Health and safety
What
In the hospitality industry, health and safety risks include heavy lifting, falls,
burns, cuts and threats. Fires are another safety risk. Shortcomings in health and safety health and safety procedures can lead to injuries and ill health among employees guests and suppliers.
How
Preventive health and wellness programmes:
- Regular fire safety checks and evacuation drills
- Emergency response plans and safety policies
- Training in CPR and installation of defibrillators
The majority of employees are within Pandox's own operations. Each hotel is responsible for the physical and mental health and safety of its employees in the workplace. They are responsible for designing processes and procedures and conducting risk assessments, risk management and investigations of incidents and accidents.
Procedures and processes for occupational health and safety are based partly on legal requirements in the individual country and partly on requirements from the hotel companies with which Pandox has franchise or management agreements. In addition, lessons are learnt from previous incidents to continuously improve processes.
The hotels have one or more health and safety representatives that employees can contact regarding health and safety. There is also a safety officer and a health and safety representative to turn to if you don't want to talk to your line manager or the hotel manager.