Upholding Good Governance and Economic Resilience Integrated Annual Report 2024 SECTION 5 • DELIVERING SUSTAINABLE VALUE FOR OUR STAKEHOLDERS 127 WHY IT MATTERS ? OUR APPROACH RISK MANAGEMENT GRI 3-3 Capitals SDGs M7 F A strong and effective risk management system is essential for identifying and addressing potential threats that could impact financial stability, reputation, regulatory compliance, and governance standards. Embedding enterprise risk management into business functions, projects, and procedures enhances decision-making and ensures a comprehensive approach to managing risks across operations. This enterprising strategy not only helps mitigate challenges but also enables the organisation to capitalise on emerging opportunities. In taking a preemptive approach to risk, the focus remains on delivering sustained, long-term value while ensuring resilience in an evolving business landscape. Establishing Board Oversight for Group-Wide Alignment An integrated approach to risk management is in place to address a wide range of potential challenges, including legislative and regulatory compliance, financial risks associated with investments and strategic initiatives, cybersecurity threats, data privacy concerns, and human resource-related issues. At the Board level, the responsibility is entrusted to the RMC to oversee the Group’s risk management framework, policies, and implementation processes. The RMC is supported by the RMT, which ensures the execution and monitoring of risk management undertakings across the Group, with quarterly updates provided to the Board. In addition to its core responsibilities, the RMC also supervises the SC, focusing on sustainability-related matters including Group’s ESG risks. Working closely with the SC, under the leadership of the Group CEO, the RMC plays a vital role in supervising our ESG and climate risks, enabling a focused and disciplined approach while maintaining clarity in actions and accountability. Developing an ERM Framework & Risk Management Policy In adopting industry best practices, the ERM Framework was developed in reference to ISO 31000:2018 Risk Management – Guidelines, ensuring a structured and effective approach to risk oversight. Encompassing ESG risks alongside corporate, financial, and operational risks, the ERM Framework designates risk owners’ responsibilities in monitoring and managing risks within their respective areas. On a quarterly basis, the risk owners provide updates through operational risk assessment for the risks within their control area, enabling a proactive approach to risk oversight. Within the ERM Framework, the Risk Management Policy sets out clear guidance for the identification, evaluation, and treatment of risks. Emphasising continuous review and monitoring, the policy ensures that risk management processes remain dynamic and responsive to emerging challenges. Mitigating Risks in Potential Mergers & Acquisitions Risk management encompasses a broad spectrum of risks, including industry dynamics, regional and country-specific challenges, funding sources, investor expectations, and the impacts of climate change. By embedding ESG considerations into investment decisions, it enables a comprehensive evaluation of potential acquisitions. Furthermore, our risk management approach extends to mergers and acquisitions, integrating an ESG Risk Assessment and Rating Checklist into the evaluation process for potential strategic investments. As part of due diligence, assessments will be conducted to identify potential risks and adverse impacts across environmental, health and safety, community, regulatory, financial, and legal factors. Read more about our approach in the Business Ethics and Corporate Governance section of this SR 2024.
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