Enhancing Risk Management and Internal Control
Risk management is a fundamental component of the Group’s operations at all levels. We emphasise the prompt identification and mitigation of risks, which serves as the cornerstone of our risk management strategy. Through a comprehensive framework, policies and procedures designed to protect both group and operational levels, we regularly conduct risk management workshops to ensure the principles of risk management are effectively communicated throughout the Group.
In August and September 2023, we hosted five workshops on risk management and were attended by the various Department Heads of the Group.
To support the sustainable development of the Group, we are actively addressing the increasing number of risks arising in the rapidly changing environment by establishing a comprehensive risk management mechanism. Central to this effort is the implementation of the Enterprise Risk Management (“ERM”) framework, which enables effective identification, assessment, and management of risks. Led by the Chief Operating Officer and the Chief Financial Officer, the ERM working group assists departments in prioritising known and emerging risks while evaluating existing controls and determining necessary additional risk mitigation strategies.
In addition, each development and construction project is assigned a designated risk controller who integrates a risk assessment register (“risk register”) into the implementation plan. This register serves as a comprehensive documentation tool that details potential risks, their likelihood and potential impacts, as well as the corresponding control and mitigation measures. Additionally, it identifies the individual responsible for monitoring each risk item. The risk register is reviewed and updated annually until the project is formally handed over to the project owners. At the Group level, we have established the Risk Management P&P, the Internal Control Framework and Management P&P to augment our departments’ efficacy in identifying, evaluating, and managing risks.
- The Risk Management P&P clearly outlines the responsibilities of Division and Department Heads in the formulation and refinement of risk management processes pertinent to their respective areas.
- Concurrently, our Internal Control Framework and Management P&P are aligned with the Internal Control - Integrated Framework (“COSO Framework”), issued by the Committee of Sponsoring Organisation of the Treadway Commission. This framework offers a robust and systematic approach to internal controls that is fundamental to the operations of our Group. Moreover, the Internal Audit Department is entrusted with conducting independent evaluations of the internal control systems throughout the Group. The findings from these assessments, along with any recommended remedial actions, are systematically reported to the Audit and Risk Committee to uphold standards of transparency and accountability.
In recognition of the significant impacts of climate change, which presents both risks and opportunities, we have carried out a climate risk assessment. For further information, please refer to the “Building Climate Resilience in Our Places” section of this Report.
