OVERVIEW PERFORMANCE SUSTAINABILITY FINANCIALS APPENDIX 147 ANNUAL REPORT 2024 Risk Management Perennial Holdings Private Limited (“Company”, or the “Group” and together with its subsidiaries, “Perennial Holdings”) has put in place an Enterprise Risk Management (“ERM”) framework to identify, measure, manage, and monitor risks. The ERM framework, which includes the objectives and procedures for risk management, is approved by the board of directors of the Company (“Board”). Key risk indicators, as part of the framework, are reviewed quarterly by the Board to ensure that existing practices stay relevant amidst changing business landscapes and regulations, while meeting the business objectives of Perennial Holdings. The Board strongly believes that a proactive approach towards risk management ensures a disciplined pursuit of business objectives and strategies, thereby creating and preserving value for shareholders of the Company (“Shareholders”). As an integral part of Perennial Holdings’ strategic and decision-making process, risk management practices are embedded into day-to-day operations at all levels of Perennial Holdings. RISK GOVERNANCE STRUCTURE The Board sets the risk culture and is overall responsible for governing and managing Perennial Holdings’ risks. This includes determining the risk appetite, overseeing the ERM framework, managing the risk profile, and monitoring the risk exposure. The Board is assisted by the management team of Perennial Holdings (“Management”), the Internal Audit Department, and the Risk Owners at the various business units, as outlined below: DESCRIPTION RISK GOVERNANCE Board of Directors • Overall responsible for risk governance and ensuring a sound system of risk management and internal controls • Governs the ERM framework and systems • Reviews risk profile, key risks and mitigation strategies • Determines risk appetite and tolerance limits RISK MANAGEMENT Management • Assists the Board in overseeing risk management • Formulates policies, strategies and oversees the design and implementation of risk management practices and internal control systems • Oversees internal and external audit Internal Audit Department • Compiles results of quarterly key risk indicators • Provides independent assurance on the adequacy and effectiveness of the internal controls and risk management practices • Highlights control gaps and their corresponding risks to Management and the Board RISK OWNERSHIP Risk Owners at Business Units • Responsible for managing risk in business activities • Risk management to be embedded as an integral part of business units’ processes • Continually assess and tailor risk measures to cater to changing business needs • Report business and operational risks and highlight key or emerging risks to Management and Internal Audit Department RISK MANAGEMENT FRAMEWORK Top Down: Instill risk culture and oversee risk management at Group level Bottom Up: Identify, assess, mitigate and monitor risks at business unit level 01 Independent Audits: Internal audit evaluates the adequacy and effectiveness of internal control systems and risk management processes External audit highlights control deficiencies in management letter RISK GOVERNANCE Board of Directors RISK MANAGEMENT • Management • Internal Audit Department RISK OWNERSHIP Risk Owners at Business units 02 03
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