RISK MANAGEMENT Managing risk is an integral part of the Group’s business and we continually strive towards best risk management practices to sustain long-term value in a dynamic real estate landscape. The Group optimises opportunities within approved risk appetite limits through robust governance and monitoring. RISK MANAGEMENT FRAMEWORK The Group’s risk management framework is designed to safeguard value, enhance decision-making, and ensure resilience in the face of an evolving risk landscape. It provides a structured approach to identifying, assessing, and mitigating risks across all levels of the organisation. The risk management framework is anchored on five key pillars, incorporating principles and guidance from standards such as the International Organisation for Standardisation’s 31000 Risk Management Standards, along with relevant best practices and guidelines. This comprehensive framework serves as the foundation for the Group’s risk management activities, ensuring consistency, effectiveness, and alignment with industry standards. CDL GROUP RISK MANAGEMENT FRAMEWORK The five key pillars serve as the foundation of ERM execution and implementation RISK STRATEGY Clear objectives, focus and guiding principles RISK CULTURE A desired risk culture and mindset RISK APPETITE Defined risk appetite statements and tolerance limits RISK GOVERNANCE Effective risk governance structure RISK PROCESS A fit for purpose process for managing, monitoring and reporting risks Material Risks are categorised into four key areas Tools and Technique to support the Risk Management Process STRATEGIC External environment as well as emerging or evolving threats on business execution OPERATIONAL AND COMPLIANCE People, Processes, Systems TREASURY AND FINANCIAL Market concentration, liquidity, interest rate, foreign and internal financial management and control INFORMATION AND TECHNOLOGY Loss of information, data security, service disruption of critical IT systems RISK MANAGEMENT PROCESS Stakeholder engagements, scenario analysis incidents and loss modelling Key risk indicators, quarterly risk reporting, Control Self-Assessment Defined risk appetite, limits and threshold Monitor & Report Identify 4 Treat 3 1 Assess 2 The Group’s Enterprise Risk Management (ERM) function conducts periodical reviews to ensure that the framework remains relevant and practical to facilitate risk-informed decision making. Continuous Improvement of Enterprise Risk Management The Group is committed to continually enhancing its risk management framework, incorporating lessons learned from past experiences and adapting to emerging risks. This ensures that our approach remains dynamic and responsive to the ever-changing risk environment. ANNUAL REPORT 2024 CORPORATE GOVERNANCE 33
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