CapitaLand Integrated Commercial Trust - Annual Report 2021

Board oversight and senior management involvement The Manager’s Board of Directors (the Board), assisted by the Audit Committee (AC), approves CICT Group’s risk appetite which determines the nature and extent of material risks CICT Group is willing to take to achieve its strategic objectives. The Board also oversees the ERM Framework; regularly reviews CICT Group’s risk profile, material risks and mitigation strategies; and ensures the adequacy and effectiveness of the risk management framework and policies. CICT Group’s management team directs and monitors the implementation and practice of ERM across the CICT Group. A robust internal control system Specialist support functions as the second line of defense are responsible for the design and implementation of effective internal controls using a risk- based approach. Regular independent review and audit Internal and External Audit as the third line of defense reviews the adequacy and effectiveness of risk management and internal control systems design and its implementation so as to provide reasonable assurance to the AC on their adequacy and effectiveness. Developing a strong risk-aware culture TheManager works closelywith the riskmanagement department at CapitaLand Investment Limited (CLI), as well as various specialist support functions, to ensure risk management practices are implemented consistently. • Regular risk workshops to ensure these practices are embedded in our decision-making and business processes. • CICT Group’s management team reinforces the risk- aware culture by setting the ‘tone at the top’ and lead by example, and communicates the risk strategy through Group- wide messages. Annual Report 2021 45 Risk Management