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 The attractiveness and stability of the HE sector directly affects student demand for accommodation, creating both opportunity and risk for occupancy and rental growth. The Group fails to deliver operational processes, projects or resources to deliver consistent safety levels, service quality and efficiency, potentially impacting costs, quality of service and reputation. We are unable to secure sites that deliver a suitable return on investment, and delays, cost overruns, or shifts in student demand during development further impact a development’s financial performance and returns. Ineffective allocation or recycling of capital within the portfolio may limit returns and growth potential. Loss of talent and capability, lack of strategic leadership capability and meeting changing diversity and inclusion requirements. Failure to deliver on our sustainability commitments and to effectively mitigate or adapt to the impacts of climate change, resulting in non-compliance with regulatory requirements, reputational damage, and reduced long-term resilience. Significant loss of personal or confidential data, disruption to corporate systems either through cyber-attack or internal theft/error. Inability to secure funding within risk appetite or exposure to rapidly rising borrowing costs, adversely impacting financial sustainability and investment capacity. Driven by the geopolitical landscape, fluctuations in monetary and fiscal policy, changes in the macroeconomic environment, present both opportunity and risk to the Group as financing and property markets adjust accordingly. RISK 1 RISK 2 RISK 3 RISK 4 RISK 5 RISK 6 RISK 7 RISK 8 RISK 9 Increased Decreased Risk outlook No change THE UNITE GROUP PLC Annual Report and Accounts 2025 56 STRATEGIC REPORT