Risk and capital management

Risk management is given top priority, because the various risks may have an adverse impact on financial performance and solvency and, by extension, materially weaken future business opportunities.

Danish Ship Finance’s main business activity is to provide loans against a first mortgage in ships. Credit risk represents the bulk of the overall risk exposure. Market risk and operational risk represent the other 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.


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

The risk report is published once every year in connection with the presentation of the annual report. The company regularly assesses whether there is a need for publication more frequently.

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

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

Risk Report 2023


The purpose of this risk report is to provide a description of 1) risk and capital management and 2) the composition of the total capital and risks in relation thereto in accordance with the disclosure requirements set out in Part 8 to the Capital Requirements Regulation (CRR).

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

Risk reports