Financial impact of risks
Vebego's risk profile is determined on the one hand by the geographic spread of its services over the core countries Belgium, Germany, the Netherlands, Switzerland, Liechtenstein and Austria and on the other hand by the diversity of its services such as facility services, care, landscaping, facility management and products & systems. Because of this double spread, there is a resilient risk appetite. Thanks to the business model, market focus, processes and continuous KPI monitoring, the individual companies can very quickly anticipate any growth or decline in the market. Both centrally and locally, we assess risks and opportunities and deal with them.
The risk appetite follows from the strategy and objectives and can be categorised as follows:
Strategic: Vebego takes risks in order to grow organically. With the commitment, drive and innovative capacity of its employees, Vebego is able to convert risks into opportunities.
Operational: Years of experience in the companies enable us to take well-considered risks. We implement proven concepts and working methods both centrally and de-centrally. Vebego also takes well considered large corporate (IT) project risks, if there is a need to do so and if this supports the long-term strategy.
Financial: The financial policy is restrained, with a focus on (organic) growth and financing without dependence on credit institutions. We minimise liquidity and credit risks (see also below).
Financial reporting: There is limited estimation uncertainty in the financial accounts.
Compliance: Vebego aims to be 100% compliant with legislation and regulations and its own internal procedures and rules of conduct. A Risk & Compliance department set up specifically for this purpose monitors compliance. Compliance with agreements with customers and suppliers and being a good employer are high priorities for Vebego.
Currency risk
Vebego operates in stable economies limited to the EU and Switzerland. The currency risk is minimal because the Vebego companies invoice customers in local currency and also pay employees and suppliers in local currency.
Price, cash flow, liquidity or credit risk
Liquidity risk is the risk that Vebego is unable to meet its financial obligations. Vebego takes the approach that it always has sufficient liquid assets available to meet such obligations when they come due, both under normal circumstances and under stressful conditions. This risk is controlled by sufficient availability of cash and credit lines.
Credit risk at Vebego relates to the possibility that customers and other counterparties may not be able to settle their obligations towards Vebego. The debtor management departments of the Vebego companies monitor this credit risk on a weekly basis. Vebego's credit risk is limited given its spread across many customers in a large number of sectors and countries.