Hoist Finance's core business is to acquire and manage loan portfolios, which is why we are actively exposed to credit risk. Being a regulated company under supervision from the Swedish Financial Supervisory Authority (SFSA) puts further emphasis on a solid understanding and management of all the risks facing the company.
The risk management framework
Risk management at Hoist Finance aims to:
- Increase awarness around the company’s complete risk picture through identification, analysis, measurement, control and reporting of risks.
- Facilitate and ensure sound and safe develpment of the business.
- 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.