58 CapitaLand Ascott Trust Risk Management The Managers of CLAS view risk management as a key enabler to support CLAS’ objectives of delivering sustainable returns to Stapled Securityholders and creating long-term value for our stakeholders. Risk management is integral to CLAS’ business. The Managers embed risk considerations into decision-making processes to ensure a proactive and rigorous approach to managing current and emerging risks. This approach is supported by a robust enterprise risk framework, a strong risk-aware culture and prudent risk-taking aligned with investors’ mandate, long-term return objectives and CLAS’ approved risk appetite. Through clear policies, controls and governance processes, the Managers manage risk systematically, safeguard CLAS’ reputation and enhance its resilience in a dynamic operating environment. Risk Framework The Managers’ Enterprise Risk Management (ERM) Framework sets out the governance requirements for the achievement of strategic objectives through managing risks in an integrated and consistent manner. It supports a proactive approach to identify, assess and manage material risks, including emerging risks. The Framework integrates risk insights across all businesses and geographies. The Framework is adapted from the International Organisation for Standardisation 31000 International Risk Management Standards and is benchmarked against other recognised best practices and guidelines. Risk Strategy Board Oversight & Management Involvement Risk-Aware Culture Internal Control System Independent Review and Audit ERM Framework RISK IDENTIFICATION & ASSESSMENT RISK RESPONSE RISK MONITORING & REPORTING • Accept • Avoid • Mitigate • Transfer • Risk & Control Self-Assessment • Investment Risk Evaluation • Key Risk Indicators • Quarterly Risk Reporting • Incident Escalation • Specialist Risk Update
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