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ANNUAL REPORT FY13/14 115
CORPORATE GOVERNANCE
Ownership of risks lies with the CEO and function heads of the Manager with overall oversight by the Board. The nature and extent of risks are
assessed regularly and the Manager maintains a risk register which identifes risks and the internal controls in place to mitigate those risks. The
risk register is reviewed and updated regularly by the CEO and function heads of the Manager and this is submitted to the AC, the ORMC and
the Board on a quarterly basis. The AC and the ORMC report to the Board on material fndings and make recommendations in respect of any
material risk issues.The risk reports will be relied upon as part of the basis for the Board and the AC to assess the adequacy and efectiveness
of the risk management and internal control systems.
Internal Controls
The Group-wide system of internal controls, which includes a code of conduct, documented policies and procedures, proper segregation of
duties, approval procedures and authorities, as well as checks-and-balances built into the business processes, constitute an important part
of the ERM system.
To ensure that internal controls and risk management processes are adequate and efective, besides control activities and reviews performed
by management, the AC is assisted by various independent professional service providers. The assistance of the internal and external auditors
enabled the AC to carry out assessments of the efectiveness of key internal controls during the year.
Any material non-compliance or weaknesses in internal controls or recommendations from the internal and external auditors to further improve
the internal controls were reported to the AC. The AC will also follow up on the actions taken by the Management on the recommendations
made by the internal and external auditors. Based on the reports submitted by the internal and external auditors received by the AC and the
Board, nothing material has come to the attention of the AC and the Board to cause the AC and the Board to believe that the internal controls
and risk management processes are not satisfactory.
There are documented procedures in place that cover fnancial reporting, new investments, project appraisal, valuation of properties, equity
fund raising, borrowings through banks, compliance and other risk management issues. The Group also has both a comprehensive insurance
coverage and a business continuity plan.
The Manager recognises that there is a signifcant amount of risk inherent in making property investment decisions. Accordingly, the Manager
has set out procedures to be followed when making such decisions. In accordance with this policy, the Manager ensures comprehensive
due diligence is carried out in relation to each proposed investment and carefully examines whether the anticipated return on investment is
appropriate having regard to the level of risk of the investment.
In assessing business risks, the Board also considers the economic environment and property industry risks. The Board, at times by the
Investment Committee, reviews and approves all investment decisions. The Management meets regularly to review the operations of the
Group.
The Manager has also established a Whistleblowing Policy which refects the Manager’s commitment to conduct its business within a framework
that fosters the highest ethical and legal standards. The Whistleblowing Policy aims to provide an avenue for employees of the Manager and of
the Property Manager to raise concerns about possible improprieties in matters of fnancial reporting or other matters. The AC is kept informed
of all concerns raised in whistleblowing reports.