Information Technology Risk IT risk comprises cyber risk, information security risk, and technology infrastructure risk. As IT is an integral part of ECW Group’s business, the security of sensitive information, including tenancy details and financial information, is crucial. Increasing threats to information security, such as hacking and website defacement, pose risks of data leakage and damage to ECW Group’s reputation. To manage IT risks, the outsourced IT team has implemented policies and procedures governing IT security, access controls, and data security. Disaster recovery testing is conducted periodically to validate the system continuity plan, and network penetration testing is also conducted regularly to check for potential security gaps. Foreign Currency Risk ECW Group’s cash flows from property operations are denominated in RMB, while distributions are paid in Singapore dollars. This exposes ECW Group to fluctuations in RMB and SGD currency rates. To mitigate foreign exchange risks on distributions to Unitholders, ECW Group may enter into derivative contracts to hedge foreign exchange risks. Risk Identification & Assessment • Risk Appetite • Risk & Control Self-Assessment • Investment Risk Evaluation • Whistle-blowing/ Business • Malpractice Risk Monitoring & Reporting • Key Risk Indicators • Quarterly Compliance Checklist Risk Response • Accept • Avoid • Mitigate • Transfer ERM FRAMEWORK ANNUAL REPORT 2024 65 ENTERPRISE RISK MANAGEMENT
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