Governance Corporate Governance CICT embraces the fundamental principles of corporate governance with a strong commitment to the key principles of accountability, transparency, and sustainability. By selecting highly talented and motivated individuals, implementing robust processes, and maintaining a well-structured organisational framework, the Manager manages CICT’s activities with the utmost integrity and strategic foresight to the benefit of Unitholders. This, in turn, allows the Manager to achieve operational excellence, set the strategic direction to pursue CICT’s long-term strategic ambitions, generate sustainable growth and foster a deep sense of trust with the Unitholders as well as HSBC Institutional Trust Services (Singapore) Limited in its capacity as trustee of CICT (Trustee). The Manager’s core values, ethics, and practices provide a strong foundation for a trusted and respected business enterprise. The Board is responsible for setting CICT’s corporate governance standards and policies and plays a key role in it. This sets the tone from the top and underscores the importance of strong corporate governance to CICT. For a detailed disclosure on the CICT’s governance framework and the application of its corporate governance practices for FY 2024 that aligns with the standards of the Code of Corporate Governance 2018 (Code), please refer to the Corporate Governance section of CICT’s Annual Report 2024. Fraud, Bribery and Corruption Risk Management Framework CICT adopts a zero-tolerance stance against any FBC1 in the conduct of its business activities and expects all its employees to be committed to the highest standards of integrity in their work and business dealings. The Manager’s employees adhere to CLI’s FBC Risk Management Policy which reiterates the strong stance against FBC and sets the overarching approach and standards in managing their risks. The FBC Risk Management Framework was established to manage FBC risks in an integrated, systematic and consistent manner. FBC Risk Management Framework Board Oversight and Senior Management Involvement The Board, with the support of the Audit and Risk Committee (ARC) and senior management, is responsible for the oversight and governance of FBC Risk Management. FBC Risk Management Strategy Prevention Detection and Monitoring Response • Process-specific Controls • Risk Assessment • Knowing and Managing Third Parties • Managing Conflicts of Interest • Hiring • Detection of Irregularities • Monitoring of Fraud Risk Profile • Independent Review and Audit • Report Fraud Incident • Investigation • Insurance and Recovery • Protocol to observe when contacted by Authorities • Disclosure to Authorities and Media • Disciplinary Actions • Review of Controls Risk-aware Culture A risk-aware culture, underpinned by CLI Group’s organisational culture, values and practices, sets the foundation for effective management of FBC risks. 1 (a) Fraud is the use of deception with the intention of obtaining an advantage, or avoiding an obligation or causing loss to another party. Fraud can be perpetuated by employees, third parties or a collusion between employees and third parties. (b) Bribery and Corruption is the offering, promising, giving, accepting or soliciting of an undue advantage of any value (which could be financial or non-financial), directly or indirectly, and irrespective of location(s), in violation of applicable law. These are usually made as an inducement or reward for a person acting or refraining from acting in relation to the performance of that person’s duties. 55 Sustainability Report 2024
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