Positioning for the Future | 51
It continues to focus on instilling mnancial discipline,
deploying capital to earn the best risk-adjusted returns
and maintaining a strong balance sheet to invest in
suitable opportunities. For more information on the
Group’s Financial Risk Management, please refer to
Financial Risk Management section on Pg 190 of this
Annual Report.
Fraud & Corruption Risk
CapitaLand is committed to the highest standards of
integrity (one of its core values), and has no tolerance
for any fraud, corruption or bribery in the conduct of its
business activities. Consistent with this commitment,
the Group has put in place an employee code of conduct
and an anti-corruption policy. The anti-corruption policy
was designed to reiterate the tone from the top and sets
out CapitaLand Global Principles on Ethical Business
Conduct. Every year, employees sign the CapitaLand
Pledge to renew their commitment to uphold the Group’s
core values. It also has a whistle-blowing policy to
encourage the reporting of suspected reportable conduct
by establishing a clearly demned process through which
such reports can be made in conmdence and without fear
of reprisal.
+XPDQ &DSLWDO 5LVN
Competition for talentwithin the real estate industry remains
intense. The Group has a competitive compensation
framework designed to attract, retain and motivate
talent, as well as foster a performance-oriented culture.
The Group seeks to build a continual leadership pipeline
and strong management bench-strength through annual
talent review, where succession plans for keymanagement
positions are reviewed and high-potential employees are
identimed for leadership development.
,QIRUPDWLRQ 7HFKQRORJ\ 5LVN
CapitaLand has put in place policies and procedures
to manage IT risks. Group-wide policies and procedures
govern IT security, access controls and data security.
Disaster recovery testing is conducted regularly to
validate the system continuity plan that is put in place. In
addition, network penetration testing is also conducted
regularly to check for potential security gaps.
,QYHVWPHQW 'LYHVWPHQW 5LVN
At the project level, independent risk evaluation
(for projects above a stipulated investment value
threshold) is conducted by the RAG to ensure that all
material risks are identimed and quantimed. Risks of
each proposal are highlighted and all parameters are
benchmarked against objective market indicators and
historical projects undertaken by the Group. If necessary,
mitigative measures are proposed. To ensure that the
potential returns of new investments commensurate with
the risks undertaken, weighted average cost of capital
and hurdle rates for various countries and business units
are computed and adopted as investment benchmarks.
They are reviewed annually and where necessary,
adjustments are made to renect corresponding changes
in business risk and costs of investments. This seeks
to ensure that CapitaLand’s investment portfolios will
create value for its stakeholders on a risk-adjusted basis.
Projects under development are tracked for progress
update and monitored for investment performance.
3ROLWLFDO 3ROLF\ 5LVN
Given the geographic diversity of its business,
CapitaLand is exposed to different levels of political
and policy risks such as political leadership uncertainty,
inconsistency in public policies, social unrest,
change in property regulations, etc. Such risks may
threaten the economic and socio-political environment
which may, in turn, affect the mnancial viability of the
Group’s investments. To mitigate these risks, overseas
operations are managed by experienced managers
and teams who are familiar with the local conditions
and cultures. Regular scenario analysis is performed to
study the impact of adverse changes on investment and
exposures in all markets and to evaluate promt and loss
potential.
Project Management Risk
To manage project management risk, the Group adopts
a rigorous project management process to ensure
that project cost, quality and time objectives are met.
There are stringent pre-qualimcation procedures to appoint
well-qualimed vendors for projects where key criteria such
as vendors’ track records and mnancial performance are
assessed. Regular site visits are conducted to closely
monitor projects’ progress to manage potential risk of
delays, poor workmanship and cost overruns. In-house
teams consisting of experienced technical staff provide
guidance and independent audit checks on quality
of architectural design, mechanical and engineering
detailing, and safety.
5HJXODWRU\ &RPSOLDQFH 5LVN
CapitaLand has global operations and is subject to the
local laws and regulations of the markets it operates
in. These include applicable listing, data privacy and
anti-corruption laws and regulations. The Group has in
place a framework that proactively identimes applicable
laws and regulatory obligations, and embeds compliance
into the day-to-day operations across the SBUs.
For instance, the Group enhanced its existing policy
and procedures to comply with the Personal Data
Protection Act 2012 (PDPA) in Singapore and appointed
a Group Data Protection ofmcer who conceptualised and
implemented the CapitaLand Group’s Personal Data
Protection Policy and PDPA compliance manual for its
operations in Singapore.
Corporate Governance & Transparency
