60 CapitaLand Ascott Trust Risk Management Risk Assessment CLAS conducts an annual Risk and Control Self-Assessment to identify, assess and document material risks, including new and emerging risks. Additionally, it involves outlining the mitigating measures and identifying any opportunities that can be leveraged to achieve strategic objectives. The identification of material risks considers the likelihood and potential impact on CLAS’ business processes and the achievement of business objectives. The measures to mitigate the identified material risks for FY 2025 are listed below: Strategic & Financial Risks Material Risks Key Mitigating Actions Competition Keen industry competition from established players who capture our customers by meeting their expectations or reacting aptly to market trends. • Constantly strive to differentiate ourselves from our peers by adapting CLAS’ business and products to the evolving needs of our customers, delivering exceptional products and services, and engaging customer‑centric initiatives and loyalty programmes. • Leverage on the extensive network and capabilities of CLAS’ Sponsor, The Ascott Limited, and third-party operators such as Accor, IHG and Marriott for our hospitality assets. • Leverage on the strong network of property management professionals with deep knowledge in rental housing and student accommodation properties. • Incorporate ESG considerations and align CLAS' business with recognised industry standards, to reinforce our leading position as a sustainable trust. • Enhance our product offerings through AEIs and refresh of brands. Economic Volatility in the macroeconomic environment including inflationary pressures, and broader economic conditions 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 has operational scale and where the underlying economic fundamentals are more robust. • Actively monitor macroeconomic trends, policies and regulatory changes in key markets.
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