98 CapitaLand Ascendas REIT As an integral part of the business, CLAR and its subsidiaries (CLAR Group) views risk management as a key enabler to support its objective as a global real estate investment trust to generate sustainable results, deliver predictable distributions and achieve long-term capital stability for Unitholders. CLAR Group embeds 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 CLAR’s strategic objectives, and CLAR Group’s approved risk appetite. Through clear policies, controls and governance processes, the Manager manages risk systematically, safeguards CLAR Group’s interests and enhances its resilience in a dynamic operating environment. Risk Framework The Manager’s Enterprise Risk Management (ERM) Framework sets out 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. It integrates risk insights across all businesses and geographies. The framework is adapted from the International Organization for Standardization (ISO) 31000 International Risk Management Standards and is benchmarked against other recognised best practices and guidelines. Risk Management Risk Strategy ERM Framework Board Oversight & Management Involvement Internal Control System Independent Review and Audit • Risk & Control Self-Assessment • Investment Risk Evaluation • Accept • Avoid • Mitigate • Transfer • Key Risk Indicators • Regular Risk Reporting • Incident Escalation Risk Identification & Assessment Risk Monitoring & Reporting Risk-Aware Culture Risk Response
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