Our Enterprise Risk Management (ERM) Framework

The Group deploys an ERM Framework to identify the key risks that may impede the achievement of its business goals in the short, medium and long-term. It sets out a consistent definition of risk and risk tolerance limits to ensure that business units have a common understanding when identifying and assessing risks. Besides business risks, this framework also analyses the financial and non-financial impact of risks arising from sustainability areas, including environmental, social and governance.

R&A Function

As part of the ERM framework’s risk universe, the Climate Risk category covers both physical and transition risk on our business due to climate change.

Each business unit utilises the risk likelihood and impact parameters to identify their key risk exposures over a five-year horizon, while assessing and managing risks within their own risk register through detailed action plans, annual business budgeting and planning processes.

Moving forward, R&A will be enhancing the Group’s ERM framework to encompass risk assessment on a longer term horizon, coupling it with the monitoring of emerging risks to address the long-term impact of climate change.


Strategic Plan Reviews

As part of our annual five-year strategic plan review, we include the three watchpoints identified in our risk analysis when considering sustainability-related risks and opportunities. This is discussed and endorsed by the Board’s Strategy and Finance Committee (SFC) and forms the foundation for initiatives relating to climate change in subsequent years.