How the financial position of a housing corporation develops depends partly on its conducted policy as well as on various external factors. External factors range from wage- and price-inflation and changes in the home sale prices to fluctuations in building expenses and the interest rates. These factors can seldom be influenced directly and consequently increase the risk for the corporation. When devising its policy for the future, a corporation will therefore need to take these associated risks into account.
One of the most appealing characteristics of our WALS system is its capability to perform risk analyses. WALS can demonstrate to you the extent to which important variables may develop given a certain policy. In an easy and straightforward manner you can assess whether and with what kind of certainty you will be able to reach and realize your set objectives. All data will be shown in a neat graph, so you can instantaneously see the direction of, for example, your solvency or the available supply of affordable houses. Moreover, WALS specifies the probability of financial variables falling below a critical limit. It will thus enable you to anticipate with more focus the risks that are facing your corporation.
ORTEC has a ton of experience in executing analyses for housing corporations. Such analyses have been applied to, among other things:
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feasibility studies for intended mergers
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risk analyses for multi-year planning
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determining the required risk-buffers and the available equity
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implementing strategies regarding housing supplies, thereby taking into account the risk profile of possible investment projects
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restructuring of the loan portfolio
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the distribution of returns over neighbourhoods.
Naturally, a healthy corporation redirects its course as soon as it starts to realize that its current policy leads to results that fall significantly below expectations. By calculating and projecting the effects of possible alternatives, a new policy may be selected which can reduce a risk, that was previously considered too large, to an acceptable level.