(e) considering and advising on risk matters referred to it by the Board or Management, including reviewing and reporting to the Board on any material breaches of the RAS, any material non-compliance with the approved framework and policies and the adequacy of any proposed action. The Manager adopts an Enterprise Risk Management (ERM) Framework which sets out the required environmental and organisational components for managing risks in an integrated, systematic and consistent manner. The ERM Framework and related policies are reviewed annually. As part of the ERM Framework, the Manager undertakes and performs a Risk and Control Self-Assessment (RCSA) annually to identify material risks along with their mitigating measures. The adequacy and effectiveness of the systems of risk management and internal controls are reviewed at least annually by Management, the ARC and the Board, taking into account the Listing Manual and best practices and guidance in the Risk Governance Guidance for Listed Boards issued by the Corporate Governance Council. The CLCT Group’s RAS, which incorporates the CLCT Group’s risk limits, addresses the management of material risks faced by the CLCT Group. Alignment of the CLCT Group’s risk profile to the RAS is achieved through various communication and monitoring mechanisms (including key risk indicators set for Management) put in place across the various functions within the Manager. More information on the Manager’s ERM Framework including the material risks identified can be found in the Risk Management section on pages 104 to 109 of this Annual Report. The internal and external auditors conduct reviews of the adequacy and effectiveness of the material internal controls (including financial, operational, compliance and IT controls) and risk management systems. This includes testing, where practicable, material internal controls in areas managed by external service providers. Any material non-compliance or lapses in internal controls together with corrective measures recommended by the internal and external auditors are reported to and reviewed by the ARC. The ARC also reviews the adequacy and effectiveness of the measures taken by the Manager on the recommendations made by the internal and external auditors in this respect. The ARC’s concurrence is obtained for the Board opinion as described below. The Board has received assurance from the CEO and the Chief Financial Officer (CFO) of the Manager, being the key management personnel who are responsible, that: (a) the financial records of the CLCT Group have been properly maintained and the financial statements for FY 2023 give a true and fair view of the CLCT Group’s operations and finances; and (b) the systems of risk management and internal controls within the CLCT Group are adequate and effective to address the risks (including financial, operational, compliance and IT risks) which the Manager considers relevant and material to the current business environment. The CEO and the CFO have obtained similar assurances from the respective risk and control owners. In addition, in FY 2023, the Board received certification by Management on the integrity of financial reporting and the Board provided a negative assurance confirmation to Unitholders as required by the Listing Manual. Based on the ERM Framework and the reviews conducted by Management and both the internal and external auditors, as well as the assurance from the CEO and the CFO, the Board is of the opinion that the systems of risk management and internal controls within the CLCT Group are adequate and effective to address the risks (including financial, operational, compliance and IT risks) which the CLCT Group considers relevant and material to its current business environment as at 31 December 2023. In arriving at its opinion, the Board noted that the ARC has concurred that such systems of risk management and internal controls within the CLCT Group are adequate and effective to address the aforesaid risks. No material weaknesses in the systems of risk management and internal controls were identified by the ARC and the Board in the review for FY 2023. The Board notes that the systems of risk management and internal controls established by the Manager provide reasonable assurance that the CLCT Group, as it strives to achieve its business objectives, will not be significantly affected by any event that can be reasonably foreseen or anticipated. However, the Board also notes that no system of risk management and internal controls can provide absolute assurance in this regard, or absolute assurance against poor judgement in decision-making, human error, losses, fraud or other irregularities. ANNUAL REPORT 2023 133 Financials Framework Portfolio Performance Leadership Overview
RkJQdWJsaXNoZXIy NTkwNzg=