Risk management is integrated into our corporate, departmental and project operations. Timely identification and mitigation of risks constitute the cornerstone of our risk management.
At the corporate level, we have introduced the Enterprise Risk Management (“ERM”) framework to identify, analyse and manage business risk. In addition, an ERM working group composed of Chief Operating Officer, Chief Financial Officer and division heads has been established to identify enterprise risks and emerging risks and assess the risk and mitigation measures. The ERM working group periodically reviews the risks and reports any high-risk issues to the ExCo.
At the departmental level, we have established the Risk Management P&P and the Internal Control Framework and Management P&P to assist the departments in identifying, assessing, and managing the underlying risks.
- Our Risk Management P&P explain the responsibilities of the Division/Department Heads while establishing and defining the risk management process for their respective divisions/departments.
- Our Internal Control Framework and Management P&P adhere to the Internal Control – Integrated Framework (“COSO Framework”) issued by the Committee of Sponsoring Organisations of the Treadway Commission (COSO) and sets out a sound internal control framework adopted by the Group. In addition, our Internal Audit Department conducts independent reviews and internal control system across the Group and then reports their findings and relevant remediations to the Audit Committee and the ExCo.
Our risk control mechanism also covers development and construction projects. A risk controller is assigned to each project, where a risk assessment register (“register”) is included in the implementation plan. The register documents the possible risks, their likelihoods and impacts, risk control and mitigation measures and the employee responsible for overseeing each risk item. The register is updated annually until the project is handed over to the project owners.
Climate change poses material risks and opportunities, and therefore we have expanded our climate risk assessment. Details are available in Section 9 Climate-Related Financial Disclosures, of this Report.
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