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Risk management

We continuously and systematically identify and manage business risks to act effectively and maintain community confidence. Effective risk management empowers our decision-making and strengthens trust in Pandox.

Business climate
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.

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.

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.

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.

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.

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.

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.

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.

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.

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

Health and safety risks in the hospitality industry include heavy lifting, falls, burns, cuts, threats, and fires. Inadequate health and safety procedures can lead to injuries and ill health among employees, guests, and suppliers.


  • Implement preventive health and wellness programs
  • Conduct regular fire safety checks and evacuation drills
  • Establish emergency response plans and safety policies
  • Provide CPR training and install defibrillators

Most employees work within Pandox's Own operations. Each hotel is responsible for the physical and mental health and safety of its employees, designing processes, conducting risk assessments, managing risks, and investigating incidents.

Health and safety procedures are based on legal requirements and hotel company standards. Continuous improvement is achieved by learning from previous incidents.

Hotels have health and safety representatives for employees to contact, along with safety officers and alternative representatives if needed.