BUILDING LANDMARKS, CHARTING GROWTH
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Annual Report 2015
tenants for creditworthiness as well as the collection of
security deposits upon signing of tenancy agreements.
Perennial’s surplus cash is placed with reputable and
established financial institutions with sound financial
positions (such as banks and finance companies in
Singapore regulated by the Monetary Authority of
Singapore), thus minimising the risk exposure.
Perennial continues to focus on improving its financial
discipline, deploying its capital to earn the best
risk-adjusted returns and maintaining a financially sound
balance sheet to enable the group to seize appropriate
business opportunities when they arise.
Project Development Risk
To manage project development risk, stringent
pre-qualification procedures are in place to appoint
well-qualified vendors with proven track records. Perennial
adopts a proactive project management process through
frequent and regular monitoring of the projects to ensure
that construction progress are within expected timeline and
budgeted cost. The Management and asset managers
also make regular site visits to keep abreast of the projects’
progress and any issues on the ground.
Fraud/Corruption Risk
Perennial is committed to the highest standard of
integrity and has zero tolerance towards any fraud,
corruption or bribery in the conduct of its business
activities. In line with this commitment, Perennial has
put in place a policy governing employees’ code of
conduct, corporate gift policy, grievance handling
procedures, pre-employment screening and compliance
and monitoring programme as part of its fraud
risk management activities.
Perennial also maintains a whistle-blowing policy
which provides employees with well-defined and
accessible channels within the group through which
they may, in confidence, raise concerns about possible
improprieties in the conduct of business activities,
financial reporting or other matters to the ARC.
This arrangement facilitates independent investigation of
such matters for appropriate resolution. The whistle-blowing
policy is communicated to all employees of Perennial
and employees are encouraged to report suspected
wrongdoing, in confidence and without fear of reprisal.
Internal audits are also conducted to prevent and detect
fraud risk.
Information Technology Risk
Perennial has implemented a set of controls and
procedures to manage information technology (“
IT
”)
risks, including areas such as IT security, access
controls and data security. High availability and
resilience are built into all critical information systems.
Perennial’s IT systems and infrastructure are also
constantly reviewed to proactively identify and mitigate
risks. At the employee level, information security
materials are put in place to educate employees of
the prevailing risks when handling corporate data.
To provide assurance on the effectiveness of Perennial’s
IT risk management, annual internal audits are
conducted on the IT processes and systems to identify
any lapses and to enhance Perennial's IT risk posture.
Compliance Risk
Compliance risks are risks arising from non-compliance
with statutes and regulations, including applicable
listing rules, data privacy and anti-corruption laws and
regulations. Compliance risk may expose Perennial
to penalties imposed by the regulators and/or legal
actions with consequential adverse impact on the
Shareholders’ confidence and Perennial’s reputation.
Perennial has put in place a framework that proactively
identifies applicable laws and regulatory obligations for
its business and operating environment, and inculcates
active compliance into the day-to-day operations
across all assets. Other than ensuring compliance with
applicable laws and regulations as well as the financial
reporting and accounting standards, the Management
also keep abreast of changes in the applicable laws
and regulations through attending training sessions and
seminars organised by the professional bodies. As and
when required, Perennial consults its legal counsel or
external professional advisors to seek clarification.
PROACTIVE RISK MANAGEMENT
The Management is committed to fostering a strong risk-
awareness culture in Perennial, which encourages prudent
risk-taking in decision-making and business processes.
Besides the formalised guidelines, structured monitoring
and reporting processes, and internal control systems,
Perennial’s human resource policy promotes good values
andethical behaviourwhicharekeyelements toaneffective
riskmanagement system. Throughclosecollaborationwith
Perennial’s stakeholders, Perennial will continue to refine
and improve its ERM framework, systems and processes
to ensure that they remain adequate and effective.
This will allow Perennial to capitalise on growth
opportunities while managing the risks of a dynamic and
challenging business environment.
