Principal and Emerging Risks

Like all businesses, JDC faces a wide variety of business-related risks and its operations are subject to many risks and uncertainties that could, either individually or in combination, affect the Company’s operations, performance and future prospects. The Board recognises that it is essential for the Company to manage risk effectively, to achieve its objectives.

The following pages identify the principal risks and uncertainties included within the Company’s risk register. The risk register is designed to manage and mitigate risk, rather than to eliminate it and includes identification and scoring of risks. The commercial environment within which JDC operates has become much riskier during 2022 and these risks will continue to persist and extend in 2023. Most notably are the viability challenges of new projects, with the expectation being reduction in property values, continued increases in build costs and significantly higher financing costs.

Risk category

Political Description

The advancement of the Company’s projects requires continued political support from the Future Places Ministerial Group and the Company’s Shareholder, the Minister for Treasury and Resources.

Changes to government policies and strategies have significant implications on major and long term development projects.

The key dependency on securing Planning consent(s) and a refusal to application(s) can result in non-delivery of Government mandated development projects.

Market Description

Key macro risks could have a negative impact on the Island’s economy such as the Ukraine war, the cost of living crisis and the continuing impacts from Covid-19 and Brexit creating an imbalance in the workforce and preventing the free movement of labour.

Operational Description

Health and Safety

Failure by the Company to prevent injuries and accidents to those that work on our construction sites, employees and the public, would result in legal, financial and/or reputational issues for the Company.

Key Risk Management Measures

• Regular engagement and communication with the Shareholder and FPMG.

• Expanded engagement with other States Members to communicate the successful outputs of JDC and future expected benefits from the pipeline of activity set out in the Company’s Strategic Business Plan.

• Active participation in public consultations on legislation and engagement, where relevant, with politicians to provide requisite industry detail.

• Time invested in extensive pre-application processes and public consultation and monitor and respond as appropriate to comments.

Key Risk Management Measures

• Regular overview of global events and market information maintained and market developments monitored.

• Regular review of development appraisals, sensitivity analysis and reverse stress testing prior to committing to any construction contract.

• Other risk mitigation measures such as interest rate hedging to preserve the financially viability of a project.

• New projects designed to provide a range of accommodation for all price brackets.

Key Risk Management Measures

• A proactive health and safety culture throughout the Company including a robust Health and Safety Policy for employees and projects with regular training and updates.

• Employing competent main contactors and commission regular independent health and safety reviews of on-site performance.

• The Company supports the Jersey Safety Council Behavioural Safety Management Scheme.

Principal and Emerging Risks

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