Risk and capital management

At Danish Ship Finance, we prioritize risk management on a high level. The various risks may have an adverse impact on financial performance and solvency.

Our main business activity is to provide loans against a first mortgage in ships. Credit risks represent the bulk of the overall risk exposure, followed by market risks and operational risks, whilst the company has limited liquidity exposure due to the rules of the executive order on bond issuance, the balance principle, and risk management.

Risk report

Danish Ship Finance is subject to disclosure requirements set out in Part 8 of the Capital Requirements Regulation as part of the Danish financial sector.

The risk report is published annually in continuation of the annual report. The company regularly assesses whether there is a need for more frequent publication.

There is no audit requirement in respect to the risk report, and Danish Ship Finance has opted not to have its risk report be subject to an audit.

We comply with all the provisions of The Executive Order on the Issue of Bond, the Principle of Balance and Risk Management section 32.

The purpose of our risk report is to provide a description of:

  • risk and capital management and
  • the composition of the total capital and risks related to that, and in accordance with the disclosure requirements set out in Part 8 of the Capital Requirements Regulation (CRR).

In addition, the report includes a description of the various types of balance sheets and off-balance sheet risks, to which the company is exposed.

Read our latest Risk Report here: Risk Report 2023 Annex