Effectively managing risk is an integral part of our business strategy, fostering resilience and driving stronger, more sustainable strategies to achieve long-term growth and profitability. A collaborative risk culture with clearly defined ownership and accountability for risk management at all levels serves as the foundation for IHH Healthcare’s robust risk management framework. An Enterprise Risk Management (ERM) framework is deployed at the Group level and strategic business units. This framework facilitates a systematic process for the Group and our business units to identify, assess and mitigate key business risks in a proactive and timely manner, with quarterly updates to the RMC. Our Corporate Governance Overview Statement, Statement on Risk Management and Internal Control, Audit Committee Report and Risk Management Committee Report are described in more detail on pages 80 to 118. Risk Management Framework The Board has overall responsibility for risk governance and provides oversight of effective risk management systems and internal controls implemented by Group management within all business units and functions. The Audit Committee (AC) and Risk Management Committee (RMC) oversee the design and effectiveness of the Risk Management framework and policies. The AC and RMC examine and recommend the Group’s degree of risk appetite and tolerance to the Board while actively highlighting, evaluating, and monitoring the Group’s key business risks. The AC also assists the Board in fulfilling its statutory and fiduciary responsibilities by ensuring a sound and robust internal control framework is implemented throughout the Group. The AC further ensures that the framework is implemented effectively to improve the Group’s ability to meet our strategic goals. 2025 to enable us to effectively evaluate climate-related risks, make well-informed decisions on capital allocation and improve our short-, medium- and long-term strategic planning capabilities. Across our business units, we manage key risks through responses needed to counter threats and seize opportunities. To ensure our Risk Management framework and processes are sound and effective, and that the risk implication of any change in strategy is identified, assessed, and documented, annual risk reviews and risk attestations are carried out with independent assurance. Refer to page 111 for more on our risk management strategy. The Group faces an evolving landscape of environmental, social and governance- related (ESG) risks and opportunities that have the potential to significantly influence our business performance and sustainability. Through stakeholder engagement and materiality assessments, the Group regularly reviews and assesses our ESG risks – including the risk dimension of missed opportunities – that exist or may be emerging in our business environment. Sustainability has been integrated into our ERM framework, where matters that are critical to the Group are assessed and managed based on defined risk rating criteria of likelihood and impact. This approach allows us to compare sustainability issues with other business risks, and prioritisation of resources in risk management. For more information on material sustainability matters, refer to page 52. Furthermore, the Group acknowledges that climate change increasingly poses significant financial risk to our business. This includes the risks and opportunities presented by rising temperatures, climate-related policy, and emerging technologies in our evolving world. We are aiming to align with the Task Force on Climate-Related Financial Disclosures (TCFD) recommendations on climate-related financial disclosures by Integration of Risk Management and Material Matters RISK MANAGEMENT MATERIALITY ASSESSMENT CORPORATE STRATEGY Risk Treatment, Monitor and Review Risk Identification and Analysis Identification and Categorisation of Sustainability Issues Risk Evaluation, Communication and Consultation Process Review Stakeholder Engagement and Prioritisation Annual Report 2023 55 Risk Management
RkJQdWJsaXNoZXIy NDgzMzc=