Potential risks and opportunities
FMO has identified several potential risks and opportunities linked to its value creation model, in the context of external developments, as follows:
Strategic Challenge | Risks | Opportunities | Strategic response |
---|---|---|---|
How to achieve a growing impact agenda, while facing external pressures during uncertain times. |
|
| Explore different ways of sourcing transactions. Focus on new and innovative solutions in energy transition, forestry and fintech and grow mobilized finance to accelerate inclusion and climate action. |
|
| ||
How to deal with a growing offer of DFI/blended finance in markets while availability of (bankable) projects are limited. |
|
| Invest in blended finance capabilities, increase efforts to attract high risk blending capital and invest in nascent markets and innovation. |
|
| ||
How to deal with increased regulatory requirements & supervisory scrutiny that puts pressure on organizational capacity and capital allocation. |
|
| Enhance risk management (incl. ESG and climate). Invest in improving internal processes and productivity, automating and integrating reporting where possible. |
|
| ||
|
| ||
| |||
How to deal with increasing stakeholder expectations to apply home country ambitions and ‘one size fits all’ regulations to host countries despite differences in local legislation, regulations and political context. |
|
| Increase transparency on FMO’s investment decisions and continue to strengthen ESG risk management and impact measurement. |
|
| ||
How to achieve harmonization and collaboration among industry peers with different interests. |
|
| Focus harmonization efforts on FMO’s core SDGs, including further development of the joint impact model and contributing to harmonization of climate reporting. |
|
| ||
|