OVER the past year, listed companies have faced a slew of challenges including slowing economic growth, higher interest rates and heightened uncertainty.
Several companies have, however, navigated the challenges by adapting their operations and keeping their focus on their top priorities.
The Business Times speaks to the boards of the nine companies that have garnered the awards for Best Risk Management at the Singapore Corporate Awards 2023 about how they successfully guided their respective companies through the challenges.
Above S$1 billion in market cap
Gold award: CapitaLand Investment
“CapitaLand Investment (CLI) adopts a strategic approach by regularly scanning for emerging and future risks such as geopolitical and environmental shifts, which could potentially impact the risk-reward relationships for our diverse portfolio.
Business units are empowered to operate within an agreed risk appetite and management framework. This strategy fosters risk ownership and accountability in decision-making.
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Amid ongoing macroeconomic uncertainties, CLI prioritises prudent risk-taking and proactive risk governance to ensure that we remain adaptable and financially resilient. We are well-poised to navigate market volatilities, capitalise on emerging opportunities, and uphold our commitment to delivering long-term sustainable returns to our stakeholders.”
- Kee Teck Koon, board risk committee chairman at CLI
Silver award: Singtel
“The lingering impact of the pandemic and the combination of high interest rates and inflation have created a challenging external environment that doesn’t allow for complacency.
Our robust risk management culture and framework have given us the preparedness needed to handle ever evolving economic and business situations. However, we need to be vigilant and proactive, and continue to strive to minimise the impact of volatility while pursuing growth opportunities.
We learn from such challenges and incorporate these lessons into our framework to strengthen our organisation for the future.”
- Teo Swee Lian, board director and chairman of risk committee at Singtel
Bronze award: UOL
“As we celebrate our 60th anniversary, we stay true to our Vision of Creating Value, Shaping a Sustainable Future.
Market cycles are volatile and getting shorter, and we constantly face disruptions. We have been agile and adapted to the uncertain business environment, while taking calculated risks. We are disciplined and manage risks by having a strong balance sheet and a diversified real estate and hospitality portfolio.
Our people are also key to UOL’s risk management efforts. Our ERM Framework and Enterprising Spirit provide us the confidence to face the challenges ahead and seize the right opportunities.”
- Yeong Sien Seu, chief legal officer at UOL
Between S$300 million and S$1 billion in market cap
Gold award: Vicom
“We have a robust process in place to identify key emerging risks that will and can potentially impact our business viability. Technology and sustainability are two such emerging risks for us, and they are driven by committees at the board level to reflect the importance we place on them.
With guidance from the board, we turn some of the risks into opportunities, where suitable and possible. For instance, we leverage technology as a strong enabler to increase productivity and explore new business areas in testing services in the environmental and social aspects.”
- Sim Wing Yew, chief executive at Vicom
Silver award: United Overseas Insurance
“A client-centric focus, prudent underwriting approach and dedicated board involvement have navigated us through this period of uncertainty. We maintain our business resilience by being nimble and calibrating our underwriting strategies to deliver long-term value to our stakeholders.
Our robust risk management framework allowed us to diversify our investments in the wake of macroeconomic adverse conditions. The fortification of our human capital and digital capabilities supported our drive in maintaining operational resilience and sustainable performance.”
- Andrew Lim, chief executive at UOI
Bronze award: Tuan Sing
“We are pleased to be recognised for our robust risk management practices. This award underscores Tuan Sing’s integrated approach to proactively identify and assess risks in our everyday decision-making.
While we recognise the need to undertake certain risks to seize opportunities, our method ensures that our business activities align with our risk appetite, and hence, maximise value for our shareholders.”
- William Liem, chief executive at Tuan Sing
Below $300 million in market cap
Gold award: Sing Investments & Finance
“Effective risk management is ingrained in the core values and operations of Sing Investments & Finance and is key to ensuring sustainable growth and development of our business.
Our company’s enterprise-wide risk management framework, encompassing our risk appetite statement, risk identification, measurement, monitoring, management and reporting, along with regular stress tests on our risk exposures and portfolios, have helped us to manage our risk exposures effectively and in a timely manner.
This approach has enabled us to develop our business in a sustainable manner and to navigate through challenges and crises, such as the recent Covid-19 pandemic.”
- Lee Sze Leong, chief executive of Sing Investments & Finance
Silver award: CSE Global
“At CSE Global, we proactively worked with our vendors and customers to manage and minimise the risks associated with project delays caused by the supply chain disruption by ensuring adequate inventory levels and addressing customer expectations on our project delivery timelines.
Our close collaboration with our supporting bankers also ensured that we continue to have their support to provide the necessary working capital for our growing business, particularly during the current challenging credit and interest rate conditions.
Lastly, we also accelerated the implementation of our diversification strategy into the critical communications business to enhance the company’s resilience and create additional growth opportunities to address changing market conditions and increasing competition risks.”
- Lim Boon Kheng, group managing director at CSE Global
Bronze award: Qian Hu Corporation
“To manage risks effectively during such challenging times, we must make it easier for right things to happen promptly and react quickly when bad things occur.
Qian Hu has developed agile risk management practices and mindsets to identify options, allowing the mitigation of risks and the building of contingency plans – scenario planning and simulations.
We have also embraced automation and digitalisation to improve our risk management processes, including access to data, use of analytical tools and reporting mechanisms that can help to provide early warnings of emerging risks to support decision-making along with insights and recommendations.”
- Yap Kok Cheng, chief executive at Qian Hu
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