Material Risk Key Mitigating Actions 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. • Outsourced execution of Cyber Security Strategy to Information Technology (IT) team from CLI. • Conduct ongoing review against existing/evolving threat landscapes, and institute measures to minimise vulnerability exposure and manage threat vectors. • Conduct regular mandatory staff IT Security Awareness Training to counter human intervention in the information security chain. • Periodically review and update group-wide IT Security Policy and Data Protection Framework to ensure relevancy. • Maintain and test IT Security Incident Management Procedure to ensure prompt response to and timely remediation of cyber security incidents. • Conduct third party vulnerability test and annual Disaster Recovery Plan exercise to assure IT infrastructure/ management system security and ensure timely recoverability of business-critical IT systems. • Put in place enhanced protection controls for systems that hold personal data. • Provide periodic updates to Audit and Risk Committee on the state of Cyber Security risk activities and key control improvements. Economic Economic instability or changes in macroeconomic factors such as inflation or unemployment, which results in challenging business conditions. • Actively monitor macroeconomic trends, policies and regulatory changes in key markets. • Adopt disciplined approach to financial management and a well-balanced portfolio. • Diversify our portfolio across asset classes and selected geographies in accordance with Board approved mandates. • Focus on markets where CICT Group or CLI has operational scale and where the underlying economic fundamentals are more robust. Financial Exposure to financial risks involving liquidity, foreign currency and interest rates and their volatility. • Actively monitor CICT Group's debt maturity profile, operating cash flows and the availability of funding to ensure that there are sufficient liquid reserves, in the form of cash and banking facilities, to finance CICT Group’s operations and AEIs. • Access to various sources of funds from both banks and capital markets to minimise over-reliance on single source of funds for any funding or refinancing requirements. • Actively review and maintain an optimal mix of fixed and floating rate borrowings. • Seek to minimise the level of interest rate risk by borrowing at fixed rate or hedging through interest rate swaps. • Seek to minimise foreign currency risks by entering into cross currency swaps to hedge the foreign currency denominated bonds into SGD for both the principal amount and the periodic interest payments. • Adopt natural hedging where possible, by borrowing in the same currency as the revenue stream. 130 CAPITALAND INTEGRATED COMMERCIAL TRUST RISK MANAGEMENT
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