CapitaLand Integrated Commercial Trust - Annual Report 2021

ERM FRAMEWORK Risk Strategy Board Oversight & Senior Management Involvement Internal Control System Independent Review and Audit Risk-Aware Culture • Risk Appetite • Risk & Control Self-Assessment • Investment Risk Evaluation • Quantitative Analysis • Scenario Analysis • Whistle-blowing • Key Risk Indicators • Quarterly Risk Reporting • Portfolio Monitoring of Financial Risks RISK IDENTIFICATION & ASSESSMENT RISK MONITORING & REPORTING RISK RESPONSE • Accept • Avoid • Mitigate • Transfer CapitaLand Integrated Commercial Trust and its subsidiaries (CICT Group) believes in maintaining a robust risk management framework to proactively identify, assess and respond to material risks that can impact our objective to deliver stable distributions and sustainable total returns to CICT Unitholders. By adhering to pre-defined risk parameters within the Manager’s Enterprise Risk Management (ERM) Framework (ERM Framework) and pursuing a risk strategy of optimisation of opportunities within the approved risk appetite levels instead of risk minimisation, we position CICT Group for long-term sustainable results. ENSURING BEST-IN-CLASS RISK MANAGEMENT STANDARDS AND APPROACHES TO OPTIMISE OPPORTUNITIES The ERM Framework is adapted from the International Organization for Standardisation (ISO) 31000 International Risk Management Standards and is benchmarked against other relevant best practices and guidelines and reviewed annually to ensure its continued relevance and practicality. It sets out the required environmental and organisational components needed to identify, assess, respond, monitor and report material risks in an integrated, systematic and consistent manner as depicted below. CapitaLand Integrated Commercial Trust 44 Risk Management