Material Risks Key Mitigating Actions Cyber Security & Information Technology » Ongoing business digitalisation exposes the business to ITrelated threats, which may result in compromising the confidentiality, integrity and availability of CLCT Group’s information assets and/or systems. » CLCT Group harnesses outsourced IT management from CLI to strategise effective Cyber Security defense which includes ongoing review against existing/evolving threat landscapes, and institute measures to minimise vulnerability exposure and manage threat vectors. » Ongoing mandatory staff IT Security Awareness Training to counter human intervention in the information security chain. » Periodically review and update Group-wide IT Security Policy and Data Protection Framework to ensure relevancy. » Maintain and test IT Security Incident Management Procedure to ensure prompt response to and timely remediation of cyber security incidents. » Conduct third party vulnerability test and annual Disaster Recovery Plan exercise to assure IT infrastructure/management system security and ensure timely recoverability of business-critical IT systems. » Put in place enhanced protection controls for systems that hold personal data. » Board oversight with regular updates to ARC on the state of Cyber Security risk activities and key control improvements. Economic » Economic instability or changes in macro- economic factors such as inflation or unemployment, which result in challenging business conditions. » Disciplined approach to capital management and a strong balance sheet. Broaden the investment strategy of CLCT Group to explore other asset classes beyond retail and industrial sector to office and integrated developments to achieve a more balanced portfolio. » Actively monitor macroeconomic trends, policies and regulatory changes. Foreign Exchange » Exposure to Chinese Renminbi (RMB) fluctuation against the Singapore Dollar which is the distribution pay out currency. » Adopt natural hedging where possible, by borrowing in RMB which matches the revenue stream generated from our investments. » Regularly review and monitor the foreign currency movement which will have impact on the translation of the overseas investments which are in foreign currency and put in appropriate hedging policy with the objective of keeping these investments for long term horizon. » Adopt prudent forex policy to ensure at least 50% of the undistributed distributable income is hedged from RMB to SGD to protect downside to the cashflow. Fraud, Bribery & Corruption » Any form of fraud, bribery and corruption that could be perpetuated by employees, third parties or collusion between employees and third parties. » Foster a culture of ethics and integrity in CLCT Group. » Adopt a zero-tolerance stance against fraud, bribery and corruption (FBC) across the CLCT Group. » Communicate our commitment to integrity from the top through policies and practices, such as FBC Risk Management Policy, Whistle-blowing Policy, Ethics and Code of Business Conduct Policies and Anti-Money Laundering and Countering the Financing of Terrorism Policy. » Adopt e-learning modules to raise awareness and train employees on ways to avoid or prevent non-compliant behaviour. ANNUAL REPORT 2023 107 Financials Framework Portfolio Performance Leadership Overview
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