RM3.2: Governance Risk Assessments

Maximum Score

0.25 points

Input Method

Assessment Portal

Prefill

Eligible

Scoring method

Static

Validation

Other answer is manually validated

2026 Updates

None

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Has the entity performed governance risk assessments within the last three years?

Assessment Instructions

Intent: What is the purpose of this indicator?

This indicator identifies the variables included in the entity’s governance risk assessments. Risk assessments refer to the identification and quantification of processes, systems, and/or scenarios that could potentially cause harm to the entity and its underlying investors.

It is important that entities monitor their exposure to governance-related risks, as these can negatively impact reputation and expose the entity to civil and criminal penalties. RM3.2 asks whether certain governance issues are assessed in a risk assessment by the entity, which is different from the existence of governance policies (PO3).

Input: How do I complete this indicator?

Select yes or no. If yes, select all applicable sub-options.

Terminology

Bribery

The offering, giving, receiving or soliciting an item of value to influence the actions of an official or other person in charge of a public or legal fiduciary duty.

Corruption

Abuse of entrusted power for private gain.

Cyber security

Protection from an assault by a third party via a computer against another computer or computer system, which is intended to compromise the integrity, availability or confidentiality of that computer or computer system.

Data protection and privacy

Customer privacy includes matters such as the protection of data; the use of information or data for their original intended purpose only, unless specifically agreed otherwise; the obligation to observe confidentiality; and the protection of information or data from misuse or theft.

Executive compensation

The financial payments and non-monetary benefits provided to high-level management in exchange for their work on behalf of an entity.

Fiduciary duty

Refers to the obligations of loyalty and care in regard to the responsibility of managing someone else’s assets. A fiduciary duty is a position of trust and examples include a duty of confidentiality, a duty of no conflict, and a duty not to profit from his position.

Forced or compulsory labor

All work or service which is expected from any person under the menace of any penalty and for which the said person has not offered himself voluntarily.

Fraud

Wrongful deception intended to result in financial or personal gain.

Governance issues

Governance structure and composition of the entity. This includes how the highest governance body is established and structured in support of the entity’s purpose, and how this purpose relates to economic, environmental and social dimensions.

Political contributions

Financial or in-kind support given directly or indirectly to political parties, their elected representatives, or persons seeking political office.

Shareholder rights

Can include the right to share in the company's profitability, income, and assets; a proxy statement; a degree of control and influence over company management selection; preemptive rights to newly issued shares; and general meeting voting rights.

Validation: What evidence is required?

No evidence required. Only the 'Other' answer is manually validated.

Other Answer

State the other governance issue. Ensure that the other answer provided is not a duplicate of a selected option above (e.g., data confidentiality when ‘data protection and privacy is selected). It is possible to report multiple other answers. If multiple other answers are acceptable, only one will be counted towards scoring.

Validation Basics

Scoring

Scoring: How does GRESB score this indicator?

The scoring of this indicator is equal to the fraction assigned to the selected option, multiplied by the total score of the indicator.

Other: The 'Other' answer is manually validated and assigned a score which is used as a multiplying factor, as per the table below:

Validation status	Score
Accepted	1/1
Not Accepted	0
Duplicate	0

Scoring Basics

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References

RobecoSAM Corporate Sustainability Assessment 2017: 5.2.3, Human rights-assessment

Get Support: Solution Providers

GRESB Solution Providers are independent, third-party organizations within the GRESB Partner network that offer specialized products, tools, and services to support sustainability performance outside the GRESB Assessment process.

The organizations below deliver commercially available solutions designed to help drive improvement for this indicator. Engagement is managed directly between the reporting entity and the Solution Provider.

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