CapitaLand Integrated Commercial Trust 98 Risk Management Three Lines of Defence All employees have individual accountability and clearly defined ownership and responsibilities, with strong enterprisewide risk culture as the foundation. 1 1st Line – Business & Operations (Risk Owners) • Primary risk owners are accountable for effectively identifying and managing risks arising from their business activities • Conduct forward-looking risk assessments, which cover a broad spectrum of risks, to support informed decision-making and responsible risk-taking • Implement controls to manage the day-to-day business risks and ensure compliance with regulations, ethical expectations and Group-wide polices 2 2nd Line – Risk Management & Specialist Functions • Risk management and specialist functions under CLI include Legal, Compliance, Digital & Technology and Sustainability, who are independent of the business units • Provide risk oversight and necessary checks and balances through monitoring and reporting processes • Foster a strong risk culture through ongoing training, guidance and communication 3 3rd Line – Internal Audit and External Audit • Internal Audit and External Audit provide independent assurance on the adequacy and effectiveness of risk management and internal control systems Risk Governance Our risk governance is anchored in independent oversight by the Manager’s Board of Directors (the Board), supported by clear accountability and transparency in risk-taking by the Manager’s management team (Management). Board & Audit and Risk Committee • Oversee risk governance, and ensure Management maintain adequate and effective risk management and internal control systems to safeguard the interests of CICT Group and its stakeholders • Approve CICT Group’s risk appetite which determines the nature and extent of material risks that CICT Group is willing to take to achieve its strategic objectives • Oversee implementation of risk frameworks and policies • Regularly review CICT Group’s risk profile, including financial and non-financial risks, and mitigation strategies that arise from business activities Management • Accountable to the Board, through the ARC, on all risk-related matters • Conduct forward-looking risk assessments to anticipate market, operational and regulatory shifts • Monitor key risk indicators and metrics, conduct scenario analysis and ensure timely and regular reporting to the Board • Maintain escalation process to provide transparency and confidence that material risks are actively managed
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