38 | CapitaLand Limited Annual Report 2014
Corporate Governance Report
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position and prospects.
The Company provides shareholders with quarterly and annual mnancial statements. In presenting the annual and
quarterly mnancial statements to shareholders, the Board aims to provide shareholders with a balanced, clear and
understandable assessment of the Company and the Group’s performance, position and prospects. In order to achieve
this, Management provides the Board with management accounts on a monthly basis and such explanation and
information as any Director may require, to enable the Directors to keep abreast, and make a balanced and informed
assessment, of the Group’s mnancial performance, position and prospects.
The Company believes in conducting itself in ways that seek to deliver maximum sustainable value to its shareholders.
Best practices are promoted as a means to build an excellent business for its shareholders and the Company is
accountable to shareholders for its performance. Prompt fulmlment of statutory reporting requirements is but one way
to maintaining shareholders’ conmdence and trust in the capability and integrity of the Company.
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The Company has in place an adequate and effective system of internal controls addressing material mnancial,
operational, compliance and information technology risks to safeguard shareholders’ interests and the Group’s assets.
The Board has overall responsibility for the governance of risk and exercises oversight of the risk management strategy
and framework. The RC assists the Board in strengthening the Company’s risk management capabilities.
All the RC members, including the Chairman of the RC, are non-executive independent Directors.
The RC is guided by its Terms of Reference, in particular, the RC
(a) makes recommendations to the Board on risk appetite and associated risk parameters including risk limits;
(b) reviews and assesses compliance with and the adequacy of the risk management framework, policies and strategies
to identify, measure, manage and report risks;
(c) oversees Management in the formulation, updating and maintenance of an adequate and effective risk management
framework, policies and strategies for managing risks that are consistent with the Company’s approved risk appetite
and parameters and report to the Board on its decisions on any material matters concerning the aforementioned;
(d) makes the necessary recommendations to the AC and the Board such that an opinion and comment regarding the
adequacy and effectiveness of the risk management and internal control systems can be made by the Board in the
annual report of the Company in accordance with the Listing Manual of Singapore Exchange Securities Trading
Limited (the Listing Manual) and the Code; and
(e) considers and advises on risk matters referred to it by Management or the Board including reviewing and reporting
to the Board on any material breaches of approved risk limits, any material non-compliance with the approved
framework and policies and the adequacy of any proposed action.
The Group adopts an Enterprise Risk Management (ERM) Framework which sets out the required environmental and
organisational components for managing risk in an integrated, systematic and consistent manner. The ERM Framework
and related policies are reviewed annually. A team comprising the P&GCEO and other key management personnel
is responsible for directing and monitoring the development, implementation and practice of ERM across the Group.
Corporate Governance & Transparency
