Annual Report 2025 99 Risk Assessment CICT Group conducts an annual Group-wide Risk and Control Self-Assessment exercise to identify, assess and document material risks, including new and emerging risks, as well as the mitigating measures and any opportunities that can be leveraged to achieve strategic objectives. The measures to mitigate the material risks for FY 2025 are listed below: Strategic & Financial Risks Material Risks Key Mitigating Actions Competition Keen industry competition from established players who can attract and manage more capital by meeting investors’ expectations or reacting aptly to market trends. • 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 analysts and regular engagement with industry consultants 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. Economic Economic instability or changes in macro-economic 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 wellbalanced 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. 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 including committed and uncommitted lines 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.
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