Ascendas REIT - Annual Report 2021

Enterprise Risk Management Board oversight and senior management involvement • The Board of Directors (the “Board”), assisted by the Audit & Risk Committee (ARC), approves the Group’s risk appetite which determines the nature and extent of material risks the Ascendas Reit Group is willing to take to achieve its strategic objectives. • The Board also oversees the ERM Framework; regularly reviews the Ascendas Reit Group’s risk profile, material risks and mitigation strategies; and ensures the adequacy and effectiveness of the risk management framework and policies. • Ascendas Reit Group’s management team directs and monitors the implementation and practice of ERM across the Ascendas Reit Group. A robust internal control system • Various specialist support functions, as the second line of defence, are responsible for the design and implementation of effective internal controls using a risk- based approach. Regular independent review and audit • As the third line of defence, Internal Audit reviews the adequacy and effectiveness of risk management and internal control systems design and implementation; and External Audit reviews the financial reporting processes so as to provide reasonable assurance to the ARC on its adequacy and effectiveness. Developing a strong risk-aware culture • The Manager works closely with the risk management department at CapitaLand Investment (CLI), as well as various specialist support functions, to ensure risk management practices are implemented consistently. • Risk workshops are conducted regularly to ensure these practices are embedded in our decision-making and business processes. • The Management reinforces the risk- aware culture by setting the ‘tone at the top’ and leads by example, and communicates our risk strategy through Group-wide messages. Annual Report 2021 147