Under our risk management framework, the Board and management are responsible for identifying and analysing the risks underlying the achievement of business objectives and for determining how such risks should be managed and mitigated.
As summarised in the following diagram, the Board oversees management in the design, implementation and monitoring of risk management and internal control systems. Management provides confirmation to the Board, through its Audit Committee, on the effectiveness of these systems.
The management of risks is subject to audit by Swire group internal audit department (“GIAD”) with support from specialist external consultants, where necessary.
Our ERM System helps us identify, analyse and manage business risks. Risk identification, analysis and management processes are completed on a regular basis throughout the year and the results help to guide our business decisions.
After reviewing our ERM System in 2017, we updated our Corporate Risk Register in 2018 to incorporate additional SD-related risks, such as climate-related risks. We have also integrated SD factors into our corporate risk analysis.
In late 2019, a half-day “top-down” risk identification workshop for our EXCOM was held by external risk management consultants. Certain new risks were identified and an evaluation of their impacts to the business is in progress. Going forward, we also plan to enhance the presentation and format of our Corporate Risk Register so that the details of each risk area are set out more clearly.
The following table provides an overview of our risk profile, including what we consider to be Swire Properties’ principal existing and emerging risks, possible associated impacts, and mitigation measures that are in place or under development. Many of these mitigation measures refer to activities discussed in more detail elsewhere in this report.