148 PERENNIAL HOLDINGS PRIVATE LIMITED • Uphold and enhance Perennial Holdings’ reputation amongst its stakeholders. The Executive Chairman and Chief Executive Officer (“CEO”), and Management are responsible for ensuring that the ERM framework is effectively implemented across Perennial Holdings. The ERM framework encompasses a five-step risk management process of communication and consultation, establishment of context, risk identification and assessment, risk treatment, as well as monitoring and review. ERM PROCESS The ERM framework is applicable to all business units, and the respective management teams are responsible for reviewing current and emerging risks and ensuring that control measures are adequate and effective. Key risk indicators are established and consolidated at the Group level and are reported to the Board every quarter. Each risk indicator has an established tolerance limit, and Management is responsible for reporting to the Board on their risk mitigation strategies should any of the tolerance limits be breached. The Management, respective Risk Owners, and the Internal Audit Department monitor key risks on an ongoing basis and report to the Executive Chairman and CEO regularly. ERM FRAMEWORK The key objective of the Company’s ERM framework is to: • Safeguard employees and assets • Protect Shareholders’ interests • Ensure informed decision-making for intrinsic value creation ERM FRAMEWORK Define external and internal environment and parameters in managing risks Determine and describe the risk Understand the causes of risk, potential impact and likelihood of risk occurring Evaluate the risk against predetermined criteria Identify action plans to mitigate risk RISK TREATMENT ESTABLISHMENT OF CONTEXT COMMUNICATION AND CONSULTATION With appropriate stakeholders at all stages of the risk management process RISK IDENTIFICATION AND ASSESSMENT MONITORING AND REVIEW Periodic review of risks and risk management mechanisms for timely update and to ensure control mechanisms are adequate Risk Identification Risk Analysis Risk Evaluation Risk Management
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