72 CapitaLand Integrated Commercial Trust Risk Management • Foster a culture of ethics and integrity. • Adopt a zero-tolerance stance against fraud, bribery and corruption (FBC) across our businesses. • Communicate our commitment to integrity from the top through policies and practices, such as FBC Risk Management Policy, Whistleblowing Policy, Ethics and Code of Business Conduct Policies and Anti-Money Laundering and Countering the Financing of Terrorism Policy. • Implement e-learning modules to enhance awareness among employees and provide training on avoiding or preventing noncompliant behaviour. • Actively monitor the geopolitical environment, government policies and regulatory changes to anticipate shifts in trade, growth and innovation in our markets. • Establish good working relationships with local authorities to keep abreast of regulatory and policy changes, and engage with local authorities. • Any form of fraud, bribery and corruption that could be perpetuated by employees, third parties or collusion between employees and third parties. • Instability or political changes in a country, changes in international policies or relations between countries that could lead to sudden changes in regulations and sentiment in major economies and key markets where CICT operates. MATERIAL RISKS KEY MITIGATING ACTIONS • 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 asset enhancement initiatives (AEIs). • Maintain 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. • Exposure to financial risks involving liquidity, foreign currency and interest rates and their volatility. • Actively monitor macroeconomic trends, policies and regulatory changes in key markets. • Adopt a 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 robust. • Economic instability or changes in macroeconomic factors such as inflation or unemployment, which results in challenging business conditions. Economic Financial Fraud, Bribery and Corruption Geopolitical
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