100 CapitaLand Ascendas REIT Risk Management Risk Assessment A Risk and Control Self-Assessment (RCSA) exercise is conducted annually to identify, assess and document material risks, including new and emerging risks, as well as the mitigating measures and any opportunities that can be leveraged to achieve strategic objectives. The measures to mitigate the material risks for FY2025 are listed below: Material Risks Key Mitigating Actions Strategic & Financial Risks Economic • Volatility in the macroeconomic environment including inflationary pressures, and broader economic conditions which result in challenging business conditions. • Proactively monitor macroeconomic trends, policies, and regulatory changes in key markets. • Diversify CLAR Group’s portfolio across asset classes and geographies in accordance with Board-approved mandates. • Focus on markets where CLAR Group has operational scale, and where underlying economic fundamentals are more robust. Financial • Exposure to financial risks involving liquidity, foreign currency and interest rates and their volatility. • Disciplined approach to financial management and a well-balanced portfolio. • Actively monitor CLAR Group’s debt maturity profile, operating cash flows and the availability of funding to ensure that there are sufficient liquid reserves, in the form of cash and banking facilities, to finance CLAR Group’s operations. • Maintain access to various sources of funds from both banks and capital markets to minimise over-reliance on single source of funds for any funding or refinancing requirements. • Actively review and maintain an optimal mix of fixed and floating rate borrowings. • Adopt natural hedging where possible by borrowing in the same currency as the revenue stream generated from investments; limit certain financial risk exposures using various forms of financial instruments (e.g. interest rate swaps and cross-currency swaps). • For more details, please refer to the Financial Risk Management section on pages 178 to 190 of this Annual Report.
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