135 ANNUAL REPORT 2022 Enterprise Risk Management (ERM) Framework In order to achieve a sound system of risk management and internal control, the board and management ensure that the risk management and control framework is embedded into the culture, processes, and structures of the company. The framework was designed to be responsive to changes in the business environment and clearly communicated to all levels. The Manager plans and executes activities to ensure that the risks inherent in the management of the REIT are identified and effectively managed to achieve an appropriate balance between realizing opportunities for gains while minimizing losses to the REIT. The Board adopted the enhanced ERM Framework. The ERM Framework was enhanced with the Group’s risk profiles being updated and action plans formulated and monitored focusing on principal business risks. It also identified the ERM reporting structure and frequency of reporting, the responsibilities of the Board Committees for ERM, and the key elements of the risk assessment process and also specifies the level of risk tolerance expressed through the use of a risk consequence and likelihood matrix. Identified key risks of the group were assessed and recorded in the risk profiles under specified categories as shown below. On 1 December 2022, the Board approved the reclassification of Risk Category to include ESG Risk, Market Risk and Partnership Risk in the ERM Policy & Framework. SCOPE, CONTEXT, CRITERIA RECORD AND REPORT COMMUNICATION AND CONSULTATION MONITORING AND REVIEW Risk Treatment RISK ASSESSMENT Risk Identi cation Risk Analysis Risk Evaluation Enterprise Risk Management (ERM) Framework STATEMENT ON RISK MANAGEMENT AND INTERNAL CONTROL
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