NTUC Income AR 2018

Remuneration of Key Executives The Corporate Governance Guidelines recommend that the remuneration of at least the top five key executives be disclosed within bands of $250,000. After careful consideration, the Board has decided not to disclose information on the remuneration of the top five key executives as the disadvantages to the Co-operative’s business interests would far outweigh the benefits of such disclosure in view of the disparities in remuneration in the industry and the competitive pressures that are likely to result from such disclosure. COMMUNICATION WITH MEMBERS Members of the Co-operative can access relevant information on the Co-operative at its website at www.income.com.sg. Members are also given the opportunity to participate actively at the Co-operative’s AGMs where they can ask questions and communicate their views. The directors, senior management and external auditors are present at these meetings to address queries and concerns raised by members. ENTERPRISE RISK MANAGEMENT The Risk Management Strategy, as formulated by the RMC and approved by the Board, serves to ensure that the risk management framework is in place to identify, measure, manage, monitor and report material risks consistently across all business activities. Enterprise Risk Management Framework Enterprise Risk Management (ERM) framework at the Co-operative level involves the overall assessment of risks which the Co-operative can be exposed to, over the present as well as reasonably foreseeable future, and its integration with capital management. The Co-operative’s enterprise-wide Risk Appetite Statement articulates quantitatively and qualitatively, the level of risk that the Co-operative is ready to accept and tolerate, and provides the basis for oversight and governance for the Co-operative. The foremost principle underlying the Co-operative’s ERM Framework is that all risk management activities are aimed at facilitating the achievement of its stated corporate objectives and social priorities, in a manner that is consistent with the Co- operative’s stated aim of financial stability and serving the community whilst protecting and enhancing the reputation and standing of the Co-operative. Risk Management Principles Risk is a key part of the Co-operative’s business and is defined as events which have a range of probabilistic outcomes, some of which have a negative impact on the organisation. The risk management framework ensures that risks are properly measured, managed and monitored. The framework is tailored to the organisation and business structure to ensure that it is relevant and effective. Review of the framework is performed regularly to ensure that it remains fit for purpose and that it does provide the safeguards and assurances that the business is soundly run. Under the risk management framework, risks are classified under five broad categories which are considered to be most central to the business: 1. Market Risk Market Risk is the risk to the Co-operative’s financial condition arising from adverse movements in the level or volatility of asset market prices and long-term investment performance. This risk is managed through the confluence of investment and liability management strategies (including bonus strategy for participating business). Corporate Governance 26 HAND IN HAND