Risk Management CLAR’s Impact Risk management forms an integral part of CLAR’s sustainability governance framework. CLAR adopts a structured and systematic approach to identify, assess and manage material risks, including those related to environmental and social factors, in order to support informed decision-making and safeguard the interests of stakeholders. How CLAR Manages its Impact Enterprise Risk Management (ERM) Framework CLAR adopts CLI’s ERM framework, which is based on the ISO 31000: International Risk Management Standards and benchmarked against other relevant best practices and guidelines. The framework is reviewed annually to ensure its continued relevance and effectiveness. The ERM framework provides a structured approach to identify, assess, respond to, monitor and report material risks in a consistent and systematic manner. Sustainability-related risks and opportunities are integrated into the ERM framework to enable a holistic approach to managing ESG considerations. More details on risk management process can be found within the Risk Management section on pages 98 to 103 of CLAR’s AR 2025. Risk and Control Self-Assessment (RCSA) The 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 its strategic goals. Management, the Audit & Risk Committee (ARC), and the Board review the adequacy and effectiveness of the risk management systems and internal controls at least once a year, considering the Listing Manual and the best practices and guidance in the Risk Governance Guidance for Listed Boards provided by the Corporate Governance Council. More details of CLAR’s material risks and key mitigating actions can be found within the Risk Management section on pages 98 to 103 of CLAR’s AR 2025. Fraud, Bribery and Corruption (FBC) The Manager maintains a zero-tolerance stance against fraud, bribery and corruption, which applies to all employees and extends to its business dealings with third parties. The Manager adopts CLI Group’s Global Anti-Bribery & Corruption Policy and Global Fraud Policy, supported by related internal policies and guidelines. To detect and prevent fraud and misconduct, the Manager adopts fair and transparent practices, maintains documented policies and internal controls, and fosters a culture of integrity grounded in its core values. More details of the internal controls system, identification of FBC as a material risk and CLAR’s mitigating measures can be found in the Corporate Governance and Risk Management sections on pages 96, 98 to 103 of CLAR's AR 2025. Business Continuity Management (BCM) CLAR’s BCM programme has been put in place for prevention, detection, response, and business recovery and resumption to minimise the effects of adverse business interruptions or unforeseen events. CLAR’s Business Continuity Plan (BCP) includes periodic desktop exercises and drills designed to stress-test the effectiveness of processes, procedures, and escalation protocols by simulating various scenarios. This comprehensive approach within the BCP ensures that the REIT is guided to handle adverse disruptions like acts of terrorism, cyber-attacks, data breaches and epidemics. The objective is to minimise financial losses for CLAR and mitigate any negative consequences that the disruptions could have on reputation, operations, and compliance with relevant laws and regulations. Stewarding Responsible Business Conduct and Governance Perpetual Targets Achieved in FY 2025 To achieve zero lapses in corporate governance, corruption / employee misconduct. To train all licensed employees on compliance with relevant governance policies. CapitaLand Ascendas REIT 48
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