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PERENNIAL REAL ESTATE HOLDINGS LIMITED
Annual Report 2015
Perennial Real Estate Holdings Limited (“
Company
”
and together with its subsidiaries, “
Perennial
”) has
put in place an enterprise risk management (“
ERM
”)
framework to identify, monitor, measure and manage its
risks. The ERM framework which includes the objectives,
policies and procedures for risk management, will be
regularly reviewed to ensure that such policies and
measures continue to be relevant and are adequate to
adapt to the changing business landscape.
Risk management is an integral part of strategic,
operational and financial decision-making at all levels of
the group. Perennial believes that a proactive approach
towards risk management is more effective in attaining
its business objectives and strategies, thereby creating
and preserving value for shareholders of the Company
(“
Shareholders
”).
The board of directors of the Company (“
Board
”) is
responsible for governing risks and ensuring that the
management team of the Company (“
Management
”)
maintains a sound systemof riskmanagement and internal
controls to safeguard the Shareholders’ interests and
Perennial’s assets. The Board’s responsibilities include
formulating the risk policies, overseeing Perennial’s
ERM framework, regularly reviewing Perennial’s risk
profile, key risks and mitigation strategies, affirming that
Perennial’s business plans and strategies accord with
the risk appetite that Perennial undertakes to achieve its
corporate objectives, and ensuring the effectiveness of
risk management policies and procedures.
To assist the Board in its risk management oversight,
the Audit and Risk Committee of the Company
(“
ARC
”) has been authorised by the Board to provide
oversight and review on matters relating to Perennial’s
risk management policies and systems. The ARC is
assisted by the Enterprise Risk Management Manager
(“
ERM Manager
”) and a team of risk owners in this
aspect. The risk owners consist of various functional
heads and managers at the asset level. On a quarterly
basis, the risk owners report business and operational
risks and highlight any probable risks to the attention of
the ERM Manager. The ERM Manager is responsible for
performing risk evaluation and monitoring all risks and
risk management issues for reporting to the ARC.
RISK MANAGEMENT FRAMEWORK
Perennial is committed to ensuring that an effective
and practical ERM framework is in place to safeguard
the employees and assets, protect the Shareholders’
interests, make informed decisions for intrinsic value
creation and ultimately uphold and enhance Perennial’s
reputation amongst the stakeholders. The Chief
Executive Officer and the Management are responsible
for implementing and monitoring the development and
practices of ERM across the group.
Perennial’s ERM framework sets out a systematic and
structured approach for the identification, assessment,
evaluation, monitoring and reporting of risks in an
integrated and consistent manner. In designing the ERM
framework, Perennial has adapted and made reference
to various industry risk management standards, such
as ISO 31000 and the COSO framework, to ensure
that the group is in line with the best practices.
Assisted by the ARC, the Board provides valuable
advice to the Management in formulating Perennial’s
ERM framework.
ENTERPRISE RISK MANAGEMENT
