The Director Conflict Risk Index assesses the potential for conflicts of interest among directors involved in a UK property development project. This index helps lenders and investors understand governance risks, which can affect funding decisions and loan terms. High conflict risk may signal challenges such as biased decision-making or disputes that could delay project completion or increase costs. Integrated alongside financial measures like Loan to Value (LTV) and interest coverage ratios, it provides a fuller picture of a development’s risk profile and financial resilience, supporting more informed property development finance decisions.
This sits beneath Planning & Legal Risk, introducing a more specific variant of the measure without changing its core interpretation. It is commonly considered alongside Shareholder Agreement Waterfall Clarity, as both are closely related measures used to assess similar aspects of performance or risk. In funding terms, Director Conflict Risk Index is most commonly encountered in connection with Loan with Discounted Share Rights within the property development capital stack.
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