OVERVIEW PERFORMANCE SUSTAINABILITY FINANCIALS APPENDIX 149 ANNUAL REPORT 2024 ENHANCING RISK MANAGEMENT PRACTICES THROUGH: Building and integrating appropriate tools into risk management system Building a strong risk culture Embedding risk management practices into all decision-making and business processes Continuously reviewing the effectiveness of controls to mitigate risks Ensuring accurate and timely info in risk monitoring Instilling risk accountability and ownership at all levels PROACTIVE ERM As risk management is an ongoing process, the ERM framework and related risk management system would be reviewed by management when required. Where appropriate, risk management practices would be refined by Management in response to new businesses of the Company, changing business landscapes and operating environment. The Group seeks to enhance its risk management practices in the following ways: Management aims to foster a strong riskawareness culture in Perennial Holdings, which encourages prudent risk-taking in decision-making. A robust internal control system and an effective and independent audit function are the twin pillars that underpin Perennial Holdings’ ERM framework. Management is responsible for the design and implementation of internal controls, which are periodically assessed through internal/external audit reviews. These audit reviews provide the Board with independent assurance on the adequacy and effectiveness of the risk management, financial reporting, internal controls, and compliance systems. Formalised guidelines, such as Perennial Holdings’ Code of Conduct, Code of Ethics, Anti-Money Laundering and Countering the Financing of Terrorism Policy, together with structured monitoring and reporting processes, are also established to promote good values and ethical behaviour among employees, which are key elements of an effective risk management system. Through close collaboration with various stakeholders, Perennial Holdings will continue to refine and improve its ERM framework, systems, and processes to ensure that these remain adequate and effective and that the risks are wellmanaged and monitored. A wellestablished risk management approach will enable Perennial Holdings to capitalise on growth opportunities amid the risks of a dynamic and challenging business environment. RISK APPETITE AND TOLERANCE As with any business ventures, there are inherent risks. In pursuing business opportunities, Perennial Holdings endeavors to ensure that risks taken are not excessive and are appropriate relative to the returns. The Board determines the risk appetite based on the extent of the risks the Group is willing to accept in order to meet its strategic objectives. The risk appetite is expressed through clearly defined and measurable risk tolerance limits. Key risks are closely monitored against the risk tolerance limits and key risk indicators, which measure the exposures for such risks. The Board reviews the risk tolerance limits and key risk indicators annually. Please find the key risks in the table on pages 150 to 152.
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