NTUC Income AR 2017

CORPORATE GOVERNANCE The IC is authorised to make all investment decisions as delegated by the Board. Property investments exceeding S$250 million in a single transaction would require the approval of the Board. The IC will report to the Board any transaction of material consequence. The IC has the discretion to refer to the Board for approval for transactions which may have wider implications beyond pure investment considerations. The IC held four regular meetings during the year. It evaluated and approved a number of major investment activities, including strategic asset allocation, reviewed performance benchmarks, and reviewed and discussed investment portfolios outsourced to external fund managers (EFMs). Risk Management Committee The Risk Management Committee (RMC) comprises seven members as follows: Chairman Sung Cheng Chih Members Richard Shermon Heng Chee How Choong Tuck Oon Pang Wai Yin Joy Tan Eric Seah (External member) The Board delegates its oversight function to the RMC while retaining the ultimate authority and responsibility. The RMC exercises the authority delegated by the Board to provide oversight on the risk management framework and policies, covering all material risks that include market, credit, insurance, operational, liquidity and reputation risks. The key duties and responsibilities of the RMC are to: • Approve, or endorse for Board’s approval, the strategy, framework and policies for risk management and capital management; • Set enterprise level risk appetite and tolerance limits; • Oversee the establishment and operation of an independent enterprise-wide risk management system; • Ensure management has established adequate systems and processes for the identification, measurement, management, monitoring and reporting of risks; • Highlight to the Board issues of concern on key risks. The Chief Risk Officer has a direct reporting relationship to the RMC. The RMC held four regular meetings during the year. It reviewed and discussed with management, the risk management strategy and plans forward, the risk appetite, the Enterprise Risk Management framework with the objective of further strengthening the Co-operative’s risk governance, and risk management approaches, practices and responses to key risks, and strategic discussions. The RMC reviewed and discussed amongst others, the Co-operative’s Own Risk and Solvency Assessment (ORSA), Risk Appetite Statement, capital and solvency management, business planning, regulatory developments, risk policies, risk reports and operational risk management. Nominating Committee The Nominating Committee (NC) comprises five members as follows: Chairman Sung Cheng Chih Members Kee Teck Koon Lau Wing Tat Sim Hwee Hoon Joy Tan ANNUAL REPORT 2017 EVERY DAY MADE DIFFERENT 21