Risk-Aware Culture CICT Group maintains a robust risk management framework that allows us to proactively identify, assess and respond to material risks that can impact our objective to deliver stable distributions and sustainable total returns to Unitholders. We position CICT Group for long-term sustainable results by pursuing a risk strategy of optimisation of opportunities within approved risk appetite levels. ENSURING BEST-IN-CLASS RISK MANAGEMENT, CORPORATE GOVERNANCE AND COMPLIANCE TO BUILD A SUSTAINABLE BUSINESS The Enterprise Risk Management (ERM) Framework is adapted from the International Organisation for Standardisation 31000 International Risk Management Standards. It 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 to, monitor and report material risks in an integrated, systematic and consistent manner as depicted below. ERM FRAMEWORK RISK STRATEGY Board Oversight & Senior Management Involvement Internal Control System Independent Review and Audit • Key Risk Indicators • Quarterly Risk Reporting • Portfolio Monitoring of Financial Risks RISK IDENTIFICATION & ASSESSMENT RISK MONITORING & REPORTING RISK RESPONSE • Accept • Avoid • Mitigate • Transfer • Risk Appetite • Risk & Control Self-Assessment • Investment Risk Evaluation • Quantitative Analysis • Scenario Analysis • Whistle-blowing Overview Leadership Performance Framework Other Information ANNUAL REPORT 2023 127 RISK MANAGEMENT
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