Potential risks and opportunities
Below is an overview of the challenges, risks and opportunities we see in the short to medium term. The risks that could impact our strategic objectives and reputation relate to our business model, ESG, regulatory compliance and strategy execution. Other risks are described in the 'Risk management' chapter in the 'Consolidated Financial Statements'. Our responses reflect tactics that we will explore or implement in the short to medium term.
Our response towards 2030
Maximize impact in a challenging macroeconomic environment.
• Insufficient growth of FMO's investment portfolio due to challenging macroeconomic conditions.
• Greater additionality for FMO in markets where other investors perceive risks as too high.
• Pilot a market creation approach.
Manage more projects exposed to higher ESG and investment risks.
• Increasing our exposure in nascent and fragile markets leads to higher ESG and investment risks that could deteriorate the quality of FMO’s investment portfolio and potentially lead to incurring greater losses.
• Support customers to improve their business practices in line with international standards, thereby lowering their risk and improving their performance.
• Strengthen engagement with stakeholders to gain knowledge and access to networks.
Incorporate EU-driven and focused regulations in an emerging market context.
• EU/Dutch regulation that is applicable to FMO may conflict with some of our high-impact ambitions (e.g. market creation in fragile states).
• Customers become more attractive to other (commercial) investors as a result of compliance with more stringent regulations.
• Strengthen our culture and systems related to integrity and risk.
Implement an ambitious organizational change agenda, while continuing business as usual.
• Insufficient focus and dispersed attention, getting stuck in Business as Usual or complex change management initiatives.
• Develop new in-house capabilities.
• Phase the implementation of our strategy so change becomes manageable.