CapitaLand Integrated Commercial Trust - Annual Report 2021

Material Risks Risk Details Opportunities Key Mitigating Actions Competition • Keen industry competition from established and new real estate players who are able to capture our customers by meeting their expectations or reacting aptly to market trends. • Tap on ONE CapitaLand ecosystem to benefit from the development expertise and opportunities without the associated risks. • Rely on strong experience in multi-sector asset and portfolio management as well as best-in- class operating platforms. • Constantly strive to differentiate ourselves from our peers by engaging customers with customer-centric initiatives and loyalty programmes. • Focus on building key enablers that give CICT Group a competitive advantage amidst the competition and digital disruptions, such as – embarking on digital transformation in our processes, enhancing our data analytics capabilities to speed up data-driven decisions, and – leveraging innovation tools and solutions to assist our customers pivoting to the new digital operating model. • Incorporate ESG considerations in CICT Group’s business. • Leverage in-house team of industry analysts to keep CICT Group on top of latest market trends. • Actively monitor relevant leasing transactions in the market to ensure rental competitiveness of CICT Group’s properties. • Constant stream of customer-centric initiatives and a shopper loyalty programme also help to set us apart. • Achieve tenant retention through tenant-centric management and engagements. Credit • Exposure to potential volatility in earnings caused by tenants’ failure to fulfil their contractual lease payment obligations, as and when these are due. • Systematic collection procedures ensure regular collections and maintain liquidity. • Minimise credit risk through a stringent collection policy. • Collect upfront payment of security deposit of an amount typically equivalent to three months’ rent. • Maintain vigilant debt monitoring and collection procedures. Cyber Security & Information Technology • Ongoing business digitalisation exposes the business to IT-related threats, which may result in compromising the confidentiality, integrity and availability of CICT Group’s information assets and/or systems. • Building a cyber resilience infrastructure and network enable us to harness the full potential of innovation and digital transformation of our business processes. • The outsourced Information Technology (IT) from CLI executes its Cyber Security Strategy through ongoing review against existing/evolving threat landscapes, and institute measures to minimise vulnerability exposure and manage threat vectors. • Ongoing mandatory staff IT Security Awareness Training to counter human intervention in the information security chain. • Periodically review and update IT Security Policy and Data Protection Framework to ensure relevancy. • Maintain and test IT Security Incident Management Procedure to ensure prompt response and timely remediation to cyber security incidents. • Conduct annual Disaster Recovery Plan exercise to ensure timely recoverability of business-critical IT systems. • For further mitigating actions relating to personal data protection, please refer to Regulatory & Compliance Risk. • Enhanced protection controls are put in place for Crown Jewel systems in which personal data resides. Annual Report 2021 47 Risk Management