SUSTAINABILITY REPORT 2023 59 GOVERNANCE ORGANISATIONAL CAPITAL At the scheduled Board meetings, the Board is apprised of the following: (a) significant matters discussed at the ARC meeting which is typically scheduled before each Board meeting; (b) the ARC’s recommendation on CLCT’s periodic and year-end financial results following the ARC’s review of the same; (c) decisions made by Board Committees in the period under review; (d) updates on the CLCT Group’s business and operations in the period under review, including market developments and trends, as well as business initiatives and opportunities; (e) financial performance, budgetary and capital management related matters in the period under review, including any material variance between any projections in budget or business plans and the actual results from business activities and operations; (f) any risk management issues that materially impact CLCT’s operations or financial performance; (g) updates on key Unitholder engagements in the period under review, as well as analyst views and market feedback; and (h) prospective transactions which Management is exploring. This allows the Board to develop a good understanding of the progress of the CLCT Group’s business as well as the issues and challenges faced by CLCT, and also promotes active engagement with Management. Fraud, Bribery and Corruption (FBC) Risk Management Framework CLCT adopts a zero-tolerance stance against any Fraud, Bribery and Corruption30 (FBC) in the conduct of its business activities and expects all its employees to be committed to the highest standards of integrity in their work and business dealings. The FBC Risk Management Framework has been set in place to manage FBC risks in an integrated, systematic and consistent manner. FBC RISK MANAGEMENT FRAMEWORK Board Oversight Risk Management Strategy The Board, with the support of the Audit committee, Risk Committee and Senior Management, is responsible for the oversight and governance of FBC Risk Management. Risk-Aware Culture A risk-aware culture, underpinned by the Group's organisational culture, values and practices, sets the foundation for effective management of FBC risks. Prevention ▶ Process-Specific Controls ▶ Risk Assessment ▶ Knowing & Managing Third Parties ▶ Managing Conflicts of Interest ▶ Hiring Detection & Monitoring ▶ Detection of Irregularities ▶ Monitoring of Fraud Risk Profile ▶ Independent Review & Audit ▶ Report Fraud Incident Response ▶ Investigation ▶ Insurance & Recovery ▶ Protocol to Observe when Contacted by Authorities ▶ Disclosure to Authorities & Media ▶ Disciplinary Actions ▶ Review of Controls 30 (a) Fraud is the use of deception with the intention of obtaining an advantage, or avoiding an obligation or causing loss to another party. Fraud can be perpetuated by employees, third parties or a collusion between employees and third parties. (b) Bribery and Corruption is the offering, promising, giving, accepting or soliciting of an undue advantage of any value (which could be financial or non-financial), directly or indirectly, and irrespective of location, in violation of applicable law. These are usually made as an inducement or reward for a person acting or refraining from acting in relation to the performance of that person’s duties.
RkJQdWJsaXNoZXIy NTkwNzg=