SRE has a Risk Management Policy approved by the Council of the company. Its aim is to ensure a unified and harmonised approach to risk management of SJSC “State Real Estate” - risk identification, risk assessment, implementation of risk mitigation and control measures, risk reporting, risk process monitoring and control, as well as to define the duties and responsibilities of risk management units and employees involved in the risk management process.
Risk management is based on the principle of “Three lines of defence”. It is an internationally recognised good practice in risk management, where an organisation's risk management is conditionally divided into three lines of defence: primary risk management (first line of defence), risk management process monitoring and control (second line of defence) and independent assurance/internal audit (third line of defence).
Risk management is implemented taking into account the fact that:
the operation of SRE and achievement of its objectives are associated with the risks;
effective risk management contributes to the achievement of the company's objectives and reduces the likelihood and/or impact of risks, as well as allows one to improve operational efficiency;
effective risk management creates a positive internal culture in which employees understand their role and responsibility in achieving the company's goals;
risk management is planned, implemented and improved in accordance with the medium-term operational strategy of SRE;
the risk management process is a continuous and regular process of strategic importance;
risk management in a capital company is based on the principle of “three lines of defence”;
the company supports and promotes the reporting of risks and incidents;
the company promotes the awareness of risks and responsibilities at all levels of the structural units.
SJSC “State Real Estate” is the largest manager of Latvia’s greatest assets – land and buildings. Land and cultural heritage, old and modern buildings, state border and customs infrastructure – all of these are national treasures for the people of Latvia.