ORGANISATIONAL CAPITAL

RISK MANAGEMENT

The Group adopts an integrated top-down and bottom-up risk review process that enables systematic identification, assessment, and prioritisation of all material risks in alignment with the Group’s strategy. An integral part of the process towards effective risk management is continuous communication and consultation with internal and external stakeholders. This collaborative approach enhances the Group’s understanding of risk management, fosters informed decision-making, and supports the implementation of best policies and practices that drive long-term value for the organisation.

MATERIAL RISKS TO THE CDL GROUP

The Group categorises its risk profiles into four key areas: Strategic, Treasury and Financial, Operational and Compliance, and Information Technology. These risks vary widely, with many factors beyond the Group’s control. To mitigate risk exposure, the Group employs appropriate risk management strategies and robust internal controls. Close monitoring and adequate control processes, supported by appropriate key risk and performance indicators, are implemented to ensure the risk is kept within the Group’s risk appetite and risk tolerance limits.

STRATEGIC RISK

A large part of the Group’s strategic risks comprises market-driven forces, evolving business landscapes, changing customer demands and disruptive innovations. The Group remains vulnerable to uncertainties in the major economies, implications from geopolitical developments, keen competition and pressure in the real estate and hospitality industry.

TREASURY & FINANCIAL RISK

Given the Group’s diversified global businesses, the Group is exposed to market concentration, liquidity, interest rate and foreign currency risks. We have established policies, guidelines and control procedures to manage and report exposure of such risks.

OPERATIONAL & COMPLIANCE RISK

The Group’s operations are exposed to a variety of operational risks relating to project management, environment, health and safety (EHS), human capital, data privacy, legal and compliance management.

INFORMATION TECHNOLOGY RISK

With the increased reliance on information systems and technology as a business enabler across our businesses, a service disruption of critical Information Technology (IT) systems or malicious and deliberate attempts of hackers to breach our IT systems could adversely affect the Group’s business continuity and reputation.