RISK MANAGEMENT INTEGRATION WITH SUSTAINABILITY The Risk Management Department continues to align sustainability reporting and efforts with the Group’s entire business operations throughout the financial year as sustainability has affected all parts of the Group, including risk. Environmental, Social, and Governance (ESG) metrics are used to evaluate the Group’s social responsibility and sustainability performance. The Group, with Board permission, remains to report material sustainability matters in accordance with regulatory requirements, as revealed on page 78 to 83 of the Sustainability Statement. KEY RISKS AND ITS MITIGATION STRATEGY THROUGHOUT 2023 The Group’s business activities expose the Group to a variety of risk, including operational and financial risk. The Group’s overall risk management objective is to ensure that the Group creates and protects the value of its shareholders and to be able to link risk mitigation or opportunity to enhancement towards achieving the Group’s performance targets. The Group’s key risks are as follows: Key Risks Description Risk Mitigation Market sentiment Competition risk The property development market continues to be highly competitive and the Group is subject to competition from various property developers, including but not limited to the availability of strategically located and reasonably priced landbanks, key talents, property types and selling prices of property. The Group’s revenue is predominantly contributed by its property development segment and therefore would be exposed to market or systemic risk. • Rebalance product mix to incorporate more owner-occupier products and affordable landed residential with strong local demand • Commitment to integrating technology into our operations and using digital tools to minimise business interruption • Online sales tools to help sales staff and agents sell online • Strengthen digital marketing efforts using videos, advertisements, contests, and partner promotions • Offer customers appealing sales packages, financing solutions, and incentives to overcome home-buying difficulties Financial Risk The Group faces financial risk exposures from credit risk due to the inability to maintain credit ratings, and liquidity risk arising from inability to efficiently meet present and future funding obligations (both anticipated and unanticipated) as they become due. These exposures if not addressed may adversely affect the Group’s financial management, daily operations and may potentially incur unacceptable losses. • T he Group diligently monitors and performs the following: - Review of cash flow forecast is carried out on a weekly basis and monitoring 12months rolling cash flow on monthly basis - To diversify funding source/lender - Review existing projects’ cash flow requirements. • T he Group continues to monitors its borrowing repayment maturity profiles and financial covenants (e.g. gearing ratios are below/within the required thresholds) Regulatory Risk The Group is committed to ensuring that its employees, process and operations are in compliance with all applicable policies and the relevant laws and regulations. The Group keeps abreast of the changes and regularly updates the regulatory requirements that affect the Group’s operations and necessary steps are taken in the form of regular discussions with our consultants, lawyers and bankers to ensure compliance. KEY INTERNAL CONTROL SYSTEMS AND STRUCTURE The Board and Management of the Group has put in place the following key internal controls to ensure that the Group’s objectives and operational effectiveness: 163 GOVERNANCE
RkJQdWJsaXNoZXIy NDgzMzc=