RISK MANAGEMENT The Managers of CLAS maintain a robust risk management framework to proactively identify, assess and respond to material risks that can impact our objectives of delivering sustainable returns to Stapled Securityholders, and creating long-term value for our stakeholders. We position CLAS for long-term sustainable results by pursuing a risk strategy of optimisation of opportunities within approved risk appetite levels. ENSURING BEST-IN-CLASS RISK MANAGEMENT, CORPORATE GOVERNANCE AND COMPLIANCE TO BUILD A SUSTAINABLE BUSINESS The Managers’ Enterprise Risk Management (ERM) Framework is adapted from the International Organization for Standardization 31000 International Risk Management Standards. It is benchmarked against other relevant best practices and guidelines and reviewed annually to ensure its continued relevance and practicality. It sets out the required environmental and organisational components needed to identify, assess, respond to, monitor and report material risks in an integrated, systematic and consistent manner as depicted below. Risk-Aware Culture ERM FRAMEWORK RISK STRATEGY Board Oversight & Management Involvement Internal Control System Independent Review and Audit • Risk Appetite • Risk & Control Self-Assessment • Investment Risk Evaluation • Quantitative Analysis • Scenario Analysis • Whistle-blowing • Key Risk Indicators • Quarterly Risk Reporting • Portfolio Monitoring of Financial Risks RISK IDENTIFICATION & ASSESSMENT RISK MONITORING & REPORTING RISK RESPONSE • Accept • Avoid • Mitigate • Transfer ANNUAL REPORT 2023 87 Overview Leadership Portfolio & Performance Sustainability & Governance Financial Statements and Other Information
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