Annual Report 2025 101 Material Risks Key Mitigating Actions Strategic & Financial Risks Geopolitical • Volatility in the geopolitical environment, including shifts in international policies or relations, political instability, which may affect investors’ sentiments, capital flows and operations in key markets where CLAR Group operates. • Proactively monitor geopolitical environment, government policies and regulatory changes, with timely assessments to inform strategic and investment decisions. • Maintain engagement with relevant regulatory authorities to keep abreast of regulatory and policy developments. • Ensure investments are diversified across asset classes and/or geographically to minimise impact from political events. • Focus on markets where CLAR Group has operational scale, and where underlying political fundamentals are more stable. Investments and Divestments • Deployment of capital into lossmaking or below-target return investments due to wrong underwriting assumptions or poor execution. • Inadequate planning to identify suitable divestment opportunities. • Perform risk assessment on all investment deals. • Review hurdle rates and weighted average cost of capital annually based on relevant risk-adjusted input parameters that serve as investment benchmarks and make necessary adjustments accordingly. • Maintain a robust investment approval process including comprehensive due diligence supported by an inter-disciplinary internal team, and/or where applicable, local independent consultants. • The Board reviews and approves all major investment and divestment decisions.
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