Under its terms of reference, the RSC performs the following duties and responsibilities: a) Sustainability Oversight The RSC oversees the Group’s sustainability matters, including those related to climate change. It provides direction on sustainability strategies (short, medium and long term) and monitors progress on sustainability plans and commitments. Information on sustainability is reported to the RSC via the Group Strategy and Sustainability Office. Details on RSC’s governance and oversight of sustainability are in our Sustainability Report. Business / Operational / Functional Risk Management 1ST LINE OF DEFENCE Oversight of Risk Management & Internal Control Systems Independent Assurance 3RD LINE OF DEFENCE Management Assurance 2ND LINE OF DEFENCE EXCO (Stewardship of ERM) Supported by R&A Function Internal Audit Board / RSC Lines of Business Group HQ Functions RISK GOVERNANCE AND MANAGEMENT b) Risk Governance The RSC assists the Board in its risk governance responsibility, overseeing the responsibilities delegated to Management to ensure that there is a sound system of controls in place for identifying and managing risks to safeguard stakeholders’ interests and the Company’s assets and reputation. ST Engineering adopts the ‘three lines of defence’ model of risk governance and management to define the relationships and roles of different functions and operations across the Group in managing risk: • The first line of defence refers to various Lines of Business’ operational teams that identify risks and implement controls. • The second line of defence is led by the EXCO and supported by the Risk and Assurance (R&A) function to establish governance and control mechanisms. • The third line of defence is represented by Internal Audit (IA), which provides independent assurance to Management and the Board as to whether the systems of risk management and internal controls are adequate and effective. Supported by R&A Function CORPORATE OVERVIEW PERFORMANCE REVIEW SUSTAINABILITY FINANCIAL REPORT 97
RkJQdWJsaXNoZXIy NjMyNDM=