76 CapitaLand China Trust Risk Management Risk-Aware Culture Internal Control System Independent Review and Audit RISK IDENTIFICATION & ASSESSMENT RISK RESPONSE RISK MONITORING & REPORTING ERM FRAMEWORK RISK STRATEGY Board Oversight & Senior Management Involvement • Key Risk Indicators • Quarterly Risk Reporting • Portfolio Monitoring of Financial Risks • Accept • Avoid • Mitigate • Transfer • Risk Appetite • Risk & Control Self-Assessment • Investment Risk Evaluation • Quantitative Analysis • Scenario Analysis • Whistle-blowing CapitaLand China Trust and its subsidiaries (CLCT Group) maintains a robust risk management framework that enables proactive identification, assessment and response to material risks. This supports CLCT Group’s objectives of delivering stable distributions and sustainable total returns to Unitholders. Our risk strategy focuses on optimising opportunities within approved risk appetite levels, positioning CLCT Group to deliver sustainable long-term results. The Manager’s Enterprise Risk Management (ERM) Framework is adapted from the International Organisation for Standardisation (ISO) 31000 International Risk Management Standards and is benchmarked against other recognised best practices and guidelines. The Framework is reviewed annually and updated as appropriate. It sets out the required environmental and organisational components to enable integrated, systematic and consistent identification, assessment, response, monitoring and reporting of material risks, as illustrated below.
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