Taking into account the disclosure of the exact fees for all Directors and the remuneration policies, composition of remuneration and performance metrics which go towards determination of the total remuneration packages of the CEO and KMP, the Board has determined that there is sufficient transparency and information on the Manager’s remuneration policies, level and mix of remuneration, the procedure for setting remuneration and the relationships between remuneration, performance and value creation consistent with the intent of Principle 8 of the Code. Disclosure of the remuneration of employees who are substantial unitholders, immediate family members of a Director, the CEO or a substantial unitholder Provision 8.2) There were no employees of the Manager who is a substantial unitholder, or who is an immediate family member of a Director, the CEO or a substantial unitholder, whose remuneration exceeds S$100,000 during the year. (C) ACCOUNTABILITY AND AUDIT Accountability, Risk Management and Internal Controls Principle 9: A sound system of risk management and internal controls to safeguard the interests of the company and its Unitholders Design, implementation and monitoring of risk management and internal control systems (Provision 9.1) The Manager has put in place an adequate and effective system of internal controls addressing material financial, operational, compliance (including sanctions-related) and information technology risks to safeguard Unitholders’ interests and ECW’s assets. The Board has overall responsibility for the governance of risk and oversees the Manager in the design, implementation and monitoring of the risk management and internal control systems. The ARC assists the Board in carrying out the Board’s responsibility of overseeing the risk management framework and policies of ECW Group. The ARC is guided by its terms of reference, in particular, the ARC: (a) assesses the adequacy and effectiveness of the risk management and internal control systems established by the Manager to manage risks; (b) oversees Management in the formulation, updating and maintenance of an adequate and effective risk management framework, policies and strategies for managing risks that are consistent with ECW Group’s risk appetite and reports to the Board on its decisions on any material matters concerning the aforementioned; (c) makes the necessary recommendations to the Board such that an opinion relating to the adequacy and effectiveness of the risk management and internal control systems can be made by the Board in the annual report of ECW in accordance with the Listing Rules and the Code; and (d) considers and advises on risk matters referred to it by Management or the Board including reviewing and reporting to the Board on any material non-compliance with the approved framework and policies and the adequacy of any proposed action. The Manager adopted an Enterprise Risk Management (“ERM”) Framework which sets out the required environmental and organisational components for managing risk in an integrated, systematic and consistent manner. the ERM Framework and related policies are reviewed annually. The Manager consistently seeks to improve and strengthen its ERM Framework. As part of the ERM Framework, the Manager, among other things, undertakes and performs a Risk and Control Self-Assessment (“RSCA”) process. From the RCSA process, the Manager maintains a risk register which identifies the material risks ECW Group faces and the corresponding internal controls it has put in place to manage or mitigate those risks. The material risks will be reviewed by the ARC and the Board. The ARC also reviews the approach of identifying and assessing risks and internal controls in the risk register. The system of risk management and internal controls is reviewed and, where appropriate, refined regularly by Management, the ARC and the Board. Where relevant, reference is made to the best practices and guidance in the Risk Governance Guidance for listed Boards issued by the Corporate Governance Council. ANNUAL REPORT 2024 53 CORPORATE GOVERNANCE
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