Hyprop Investments Limited Integrated annual report 2016

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Hyprop Investments Limited
Integrated annual report 2016
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RISK MANAGEMENT continued
Strategic
objective Key risk Probable effects
Severity
of risk Stakeholder
EMERGING MARKET INVESTMENT (EXCLUDINGSOUTH AFRICA) IN SOUTH-EASTERN EUROPE
Increase
portfolio and
geographic
diversification
Operating environment • • Operating cost increases
(specifically municipal rates
and taxes)
• • Cost of development
increases
Medium • • Providers of capital (debt
and equity investors,
financial institutions)
Tax risk • • Changes to tax laws in
countries where Hyprop
invests
Medium • • Providers of capital (debt
and equity investors,
financial institutions)
POLITICAL RISK
Minimise political
risk due to policy
changes
Governments adopt policies
that are unfavourable to foreign
investors, particularly
movement of capital, taxation
and land ownership
• • Share price fluctuations
• • Exchange rate fluctuations
• • National credit rating
affected
High (SA) • • Providers of capital (debt
and equity investors,
financial institutions)
Internal risks (under control of management)
External risks (can be mitigated by management)
External risks (outside the control of management)