OVERVIEW PERFORMANCE SUSTAINABILITY FINANCIALS APPENDIX 151 ANNUAL REPORT 2024 Key Risk Objective Value Impact Mitigating Measures Key Risk Indicators Linkage to Strategic Priority (see legend below) Compliance Risk – Breach of relevant laws and regulations To ensure compliance with relevant laws and regulations in all material aspects • Penalty, legal actions and/or loss of operating licenses • Financial and reputational damage • Identifying applicable laws and regulatory obligations, highlighting emerging regulatory changes and inculcating active compliance into the day-to-day operations across all assets • Constantly keeping abreast of changes in laws and regulations through updates, trainings and consultations with legal counsels or external professional advisors • Regulatory queries, warnings, fines and administrative penalties Macroeconomic Risk – Economic slowdown in Singapore or China – Adverse global economic conditions To ensure that the Company is prepared and takes appropriate strategies to mitigate any potential adverse impact from deteriorating macroeconomic conditions • Reduced revenue • Negative impact on valuation, as well as gearing and debt ratios • Increased cost of financing and holding cost of investment assets • Negative impact on asset divestment • Adopting a disciplined approach towards financial management • Constantly reviewing business strategies to formulate pre-emptive mitigations • Vigilant monitoring of budgets and expenditures, key global economic trends and the macroeconomic environment of Perennial Holdings’ investments • Strengthening competitiveness through product and service differentiation • Diversifying investment portfolio across geographies and asset classes • Focusing on cities and countries where the Shareholders have extensive market knowledge • Major economic indicators such as GDP growth Healthcare Regulatory Risk – Lack of competency in the highly regulated industry – Medical malpractice and negligence To avoid any common pitfalls when operating in a complex and highly regulated industry • Regulatory or legal actions and/or loss of operating licenses • Reputational damage • Liaising with relevant local authorities and consultants to actively monitor medical and healthcare-related regulation or policy developments • Establishment of robust operational level SOPs to prevent errors and incidents • Engaging healthcare professionals with good track records • Number of warnings, fines, demerit points, administrative penalties and regulatory/legal actions received
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