51 Risk Management Risk Management Framework The Board holds ultimate responsibility for risk governance, overseeing the effectiveness of the risk management systems and internal controls implemented by Group management across all business units and functions. The Audit Committee (AC) and Risk Management Committee (RMC) are responsible for reviewing the design and effectiveness of the Risk Management 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. framework and policies. They assess and recommend the Group’s risk appetite and tolerance to the Board, while actively highlighting, evaluating, and monitoring the Group’s key business risks. The AC supports the Board in fulfilling its statutory and fiduciary duties by ensuring a robust internal control framework is in place throughout the Group. The AC further ensures that the framework is implemented effectively to enhance the Group’s capacity to achieve our strategic objectives. An Enterprise Risk Management (ERM) framework is deployed at the Group and strategic business unit levels. This framework enables a systematic approach for identifying, assessing and mitigating key business risks proactively and promptly, 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 72 to 98. Integration of Risk Management and Material Matters Risk Identification and Analysis Identification and Categorisation of Sustainability Risk Treatment, Monitor and Review Risk Evaluation, Communication and Consultation Process Review Stakeholder Engagement and Prioritisation RISK MANAGEMENT MATERIALITY ASSESSMENT CORPORATE STRATEGY The Group faces an evolving landscape of environmental, social and governance- related (ESG) risks and opportunities which have the potential to significantly influence our business performance and sustainability. Through ongoing stakeholder engagement and materiality assessments, the Group consistently evaluates and reassesses our ESG risks – including the risk dimension of missed opportunities – that may arise or evolve within our business environment. Sustainability has been integrated into our ERM framework, where critical matters are evaluated and managed based on defined risk rating criteria of likelihood and impact. This approach enables us to align sustainability issues with other business risks, ensuring resources are effectively prioritised in risk management. For more information on material sustainability matters, refer to page 50. 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 working towards IFRS S2: Climaterelated Disclosures by 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 actively manage key risks by implementing responses that address threats and capitalise on opportunities. To ensure the effectiveness and robustness of our Risk Management framework and processes, we conduct annual risk reviews and risk attestations, with independent assurance, to identify, assess, and document the risk implications of any strategic changes. Refer to page 97 for more on our risk management strategy.
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