RISK MANAGEMENT

CDL adopts an integrated top-down and bottom-up risk review process to enable comprehensive identification and prioritisation of all material risks throughout CDL. An integral part of our process towards effective risk management is continuous communication and consultation with internal and external stakeholders. This enables CDL to understand the importance of risk management and appreciate the decisions made within, as well as to implement the best policies necessary for the overall benefit of CDL.

Top Down Process Bottom-Up Process
  • RMC, chaired by the Group Chief Executive Officer and comprising senior management personnel from the respective business units, meets quarterly to review and discuss the top-tier risks and examine any other risk issues that they consider important. This forum offers an opportunity for management to identify and respond to emerging risk early, voice risk concerns, share risk insights, and provide risk management guidance.
  • The ERM department facilitates the review of emerging risks by compiling relevant information from both internal and external sources.
  • Emerging risks that are identified and considered material are further assessed and monitored by relevant business units or group functions.
  • Business units and group functions are required to submit their risk report and highlight any other risk issues to the ERM department on a quarterly basis.
  • Through a diligent process of aggregation, filtering, prioritising, and consultation, the ERM department will compile a quarterly risk management report for review and discussion at the RMC forum.
  • Upon approval, the report is submitted to the ARC on a quarterly basis. “Deep dive” presentations on selected risks are presented to the ARC for a more detailed review.
  • Annually, the ERM department facilities a Group-wide risk review exercise that requires business units to proactively identify, assess and document material risks as well as the corresponding key controls and mitigating measures needed to address them.

Material Risks to CDL

CDL categorises its risk profile into four key areas: Strategic, Treasury & Financial, Operational & Compliance, and Information Technology. Many of these affects not just our businesses, but also other businesses in and outside the real estate industry. These risks vary widely, and many are beyond CDL’s control. CDL is committed to mitigate its exposure through appropriate risk management strategies and internal controls.

Moving Forward

We are committed to continually improve our risk management framework, capabilities, and culture across CDL to ensure the long-term growth and sustainability of our business. By leveraging training initiatives to raise employees’ risk management awareness and capabilities, we can continuously enhance the Group’s ‘risk-centric’ culture, and integrate risk management effectively in our businesses.

More information can be found in the Risk Management Report in CDL’s 2018 Annual Report