CapitaLand Integrated Commercial Trust - Annual Report 2021

CICT GROUP’S MATERIAL RISKS AND OPPORTUNITIES A Group-wide Risk and Control Self-Assessment (RCSA) is conducted annually to identify the material risks, including new and emerging events, that CICT Group faces in delivering our strategic objectives, its mitigating measures and the opportunities. From the 2021 RCSA results, the measures taken to mitigate the material risks and opportunities to capitalise on are set out below: Material Risks Risk Details Opportunities Key Mitigating Actions Business Interruption/ Pandemic • Business disruptions arising from the COVID-19 pandemic have resulted in potential structural disruptions to some of the real estate asset classes, particularly in the retail and office sectors. • It also spurred stakeholders’ attention on the diversification and resilience in CICT Group’s supply chain. • It accelerated the pace of pre-existing trends on digital adoption, which has disrupted and transformed the real estate industry to an even greater extent. • Exposure to sudden and major disaster events such as pandemic, terrorist attacks, fires, prolonged power outages or other major infrastructure or equipment failures could cause business interruption which may significantly disrupt operations at the properties. • Ride on the digital adoption trend and ongoing business digitalisation to innovate and improve product offerings for our customers. • Opportunities to reposition or repurpose our assets to meet the new norms. • Continue to place the well-being of our tenants, shoppers and customers as top priority by adopting contactless technologies and innovative tech solutions to enhance safety, cleanliness and hygiene at CICT Group’s properties. • Future proof CICT Group’s business through digitalisation of business operations and processes, innovation and flexibility in CICT Group’s product offerings such as – accelerating our omnichannel solutions, – assisting our customers with digital transition, – optimising the use-of-space, and – providing flexible workspace. • Build collaborative relationships and work closely with supply chain contractors, vendors and suppliers to achieve environmental and social goals through CLI’s Supply Chain Code of Conduct. • Lookout for counter-cyclical opportunities that will strategically uplift CICT Group’s growth trajectory. • Ensure that there are emergency preparedness and standard operating procedures in place at each of our properties. • Our Property Managers are prepared to manage the situations together with the police and civil defence force in the event of terrorist attacks and sabotages. • Ensure business interruption insurance coverage is adequately purchased. CapitaLand Integrated Commercial Trust 46 Risk Management