The risk management framework
Risk management at Hoist Finance aims to:
- Increase certainty regarding the achievement of the company’s objectives through identification, analysis, measurement, governance, control and reporting of associated risks.
- Secure the company’s survival by maintaining adequate capital and liquidity levels.
This creates and maintains confidence in Hoist Finance among our stakeholders, thereby enabling sustainable shareholder value.
To fulfil these goals, the Board of Directors has adopted policies and strategies for the management, analysis, control and reporting of risks in day-to-day operations, which together comprises a risk management framework.
Hoist Finance’s core business and risk strategy is to generate returns through controlled exposure to credit risk in the form of acquired loan portfolios. Therefore, we actively pursue this type of credit risk. Other types of risk, such as operational risk and market risk, are undesirable but sometimes unavoidable. However, these risks are minimised as far as is economically justifiable.