The Executive Leadership Team assesses risk on an ongoing basis, including risks related to financial reporting. The overall risk management due diligence process is overseen by the Board of Directors.

 

DHI operates in a highly competitive and rapidly changing global marketplace. We consider risk management and due diligence a necessity for sound business and have adopted a structured approach comprising four elements: risk identification, risk assessment, identification of mitigating actions and risk reporting. Our risk management and due diligence approach includes non-financial topics such as environment, social and governance (ESG) aspects.

 

In 2022, DHI delivered on more than 2,400 client projects globally. Loss on projects is minimised by carefully evaluating risks during the bidding and execution process. A thorough risk evaluation process is in place during the bidding process, and executing risks are evaluated as part of the daily project management process and the monthly follow-up process. Project resources are allocated between the DHI entities to the extent possible to minimise under or overcapacity.

 

Risk of potential losses from claims from clients is mitigated by a thorough quality review of all projects delivered and by an international liability insurance programme.

 

Potential risks from breakdown of our central IT systems and from cybersecurity issues are mitigated by our internal IT policies and processes.

 

As a global advisory company, DHI is influenced by the geopolitical development and economic situation. These market risks are mitigated by the global presence and variety of products and services offered to a wide span of both public and private clients.

 

DHI’s financial risks are managed centrally to ensure alignment of financial risk management with corporate objectives; to optimise access to debt capital and to ensure that treasury operates within a controlled environment.

 

DHI’s excess funds, which are not required to meet operational financial obligations, are placed in short-term bonds and shares with a relatively low-risk profile.

 

The DHI Business Management System is an integrated system for the management of business, quality, business integrity, environment and health and safety. It fulfils the requirements of ISO9001 (quality management), ISO 14001 (environmental management) and ISO 45001 (health and safety management). The environmental management as well as health and safety management of the office operations are optional.

 

As explained in the ESG Review section, we are working towards implementing a DHI-wide Information Security Management System according to ISO 27001, which we aim for certifying during 2023.

 

DHI’s independent group auditors are appointed for a term of one year at the Annual General Meeting following a proposal from the Board of Directors, which is based on a recommendation from the Audit Committee. The framework for the auditors’ duties, including their remuneration, audit and non-audit services, is agreed annually between the board and the auditors following the recommendation of the Audit Committee.