61 Annual Report 2024 MATERIAL RISKS KEY MITIGATING ACTIONS Cybersecurity & Information Technology Ongoing business digitalisation exposes the business to IT-related threats, which may result in compromising the confidentiality, integrity and availability of CLAS’ information assets and/or systems. • The outsourced information technology (IT) function from CLI executes its Cyber Security Strategy by continuously reviewing the existing or evolving threat landscapes. It institutes measures to minimise vulnerability exposure and manage threat vectors, including enhanced protection controls for systems that hold personal data. • Conduct regular mandatory staff IT Security Awareness Training to mitigate human intervention in the information security chain. • Conduct IT Security Incident Management Procedure test, thirdparty vulnerability test and annual Disaster Recovery Plan exercise to assure IT infrastructure/management system security and ensure timely recoverability of business-critical IT systems. • Board oversight with regular updates to the ARC on the state of Cyber Security risk activities and key control improvements, with periodic review and updates of the Group-wide IT Security Policy. Economic Economic instability or changes in macro-economic factors such as inflation or unemployment, which result in challenging business conditions. • Adopt a disciplined approach to financial management. • Diversify our portfolio across asset classes and geographies in accordance with Board-approved country limits. • Focus on markets where CLAS or its Sponsor, The Ascott Limited (Ascott), has operational scale and where the underlying economic fundamentals are more robust. • Actively monitor macroeconomic trends, policies and regulatory changes in key markets. Financial Exposure to financial risks involving liquidity, foreign currency and interest rates and their volatility. Volatility of cash flow negatively impacting planned cash generation and cash usage profile. Volatility of foreign currencies and interest rates resulting in realised/ unrealised losses. • Actively monitor CLAS’ debt maturity profile, operating cash flows and the availability of funding to ensure that there are sufficient liquid reserves, in the form of cash and banking facilities, to finance CLAS’ operations. • Maintain access to various sources of funds from both banks and capital markets to minimise over-reliance on a single source of funds for any funding or refinancing requirements. • Adopt natural hedging, where possible, by borrowing in the same currency as the revenue streams generated from CLAS’ investments. • Actively review and maintain an optimal mix of fixed and floating interest rate borrowings. • For more details, please refer to the Financial Risk Management section on page 224. Fraud, Bribery & Corruption Any forms 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 CLAS. • Adopt a zero-tolerance stance against fraud, bribery and corruption (FBC) across our businesses. • Communicate our commitment to integrity from the top through policies and practices, such as the 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. • Implement e-learning modules to enhance awareness among employees and provide training on avoiding or preventing noncompliant behaviour.
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