STRATEGIC REPORT RISK MANAGEMENT continued PRINCIPAL RISKS SUMMARY HEATMAP High Medium Low Very Low Critical INHERENT RISK LEVEL High Medium Low Very Low Critical RESIDUAL RISK LEVEL RISK APPETITE Flexible Cautious Minimal Averse Open A reduction in demand driven by geopolitical factors A reduction in demand driven by macroeconomic conditions, customer value-for-money considerations and affordability Increase in supply; as a maturing sector, new entrants to the market will increase competition and could lead to a loss of market share Major health and safety (H&S) incident in a property or a development site Inability to secure the best development sites on the right terms, at a suitable level of return on investment Schemes are delivered late and/or over budget impacting our financial returns and damaging our reputation with students Loss of talent and capability, lack of strategic leadership capability and meeting changing DEIBW requirements Significant loss of personal or confidential data, disruption to corporate systems either through cyber-attack or internal theft/error Borrowing costs rise rapidly or inability to obtain funding at cost within risk appetite Internal controls are exploited to allow individuals to gain from asset misappropriation, fraudulent statements and corruption Failure to meet external, public commitments, regulatory and reporting requirements made in respect of sustainability Failure to mitigate or prepare for the impact of climate change 1 2 3 4 5 6 7 8 9 10 11 12 THE UNITE GROUP PLC Annual Report and Accounts 2024 56