71 Annual Report 2024 MATERIAL RISKS AND KEY MITIGATING ACTIONS An annual Group-wide Risk and Control Self-Assessment (RCSA) exercise is conducted to identify, assess and document key material risks, including new and emerging risks, that CICT Group faces as well as the respective mitigating measures and any opportunities that we can leverage to achieve our strategic objectives. The following measures are taken to mitigate the identified material risks based on the 2024 RCSA exercise. • Detailed assessment of the physical risks in the evaluation of any new acquisitions. • Incorporate shadow internal carbon price in the evaluation of new investment/capital expenditure decisions. • Regularly review CICT Group’s mitigation and adaptation efforts, which include future-proofing our portfolio, enhancing the operational efficiency of our properties and establishing targets for carbon emissions reduction and water, energy and waste efficiency. • Implement measures to drive decarbonisation across CICT Group’s value chain. • Entrench a sustainable safety culture through deep safety capabilities, disciplined safety practices, and a progressive and pervasive safety mindset that drives key safety performance targets for our supply chain. • Leverage CapitaLand Investment Limited’s (CLI) well-established environmental management system which is externally certified to ISO 14001 in 19 countries. • For more information, please refer to CICT’s website: https://www. cict.com.sg/environment.html. • Constantly strive to differentiate ourselves from competitors by proactively engaging customers on their requirements and provide relevant solutions. • 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. • Constant stream of customer-centric initiatives and a shopper loyalty programme also help to set us apart. • Outsourced execution of Cyber Security Strategy to Information Technology (IT) team from CLI by continuously reviewing against existing or evolving threat landscapes, and institute measures to minimise vulnerability exposure and manage threat vectors, including enhanced protection controls for systems that hold personal data. • Conduct regular mandatory staff IT Security Awareness Training to mitigate human intervention in the information security chain. • Conduct IT Security Incident Management Procedure test, 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 • Provide periodic updates to Audit and Risk Committee on the state of Cyber Security risk activities and key control improvements. • Keen industry competition from established real estate players who are able to attract and manage more capital by meeting investors’ expectations or reacting aptly to market trends. • 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. MATERIAL RISKS KEY MITIGATING ACTIONS • Physical risks such as rising sea levels, violent storms, long intense heat waves, flash floods and fresh water depletion. • Transition risks including potentially more stringent regulations and increased expectations from stakeholders. Cyber Security and Information Technology Competition Climate-related
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