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Risk managementIdentifying and managing risks:1. Capital allocation risks• Keppel Land has a capital allocation policy which iscurrently under review by management. It aims to guidemanagement towards a portfolio that minimises the risksassociated with investing in any country, sector or project.• For capital to be optimally deployed, Keppel Land willensure that timely and accurate market informationis available.2. Regulatory and political risks• Keppel Land engages external consultants and in-houselegal counsel at early stage of development of a projectto manage such risks.• Keppel Land has established close relationships withbusiness associates and government officials toanticipate possible changes in government policies.• Staff attend relevant seminars to be updated and keptinformed of new regulations and/or implications ofpolitical developments.3. Partnering risks• Keppel Land selects the right partners with like-mindedvisions for collaboration to achieve strategic goals andobjectives.• Establishing clearly defined operational structures,defining roles and responsibilities, setting up of executivecommittee to resolve operational issues and establishedcommunications channels to ensure alignment of interestare measures taken to minimise conflicts with jointventure partners.4. Product development and customer want risks• Keppel Land monitors new project launches and marketresponse in order to better understand market needsand wants.• Feedback from Customer Focus Unit and PropertyManagement Division is obtained for review andimprovement of projects.• Keppel Land organises design competitions to obtainthe best designs for its projects.5. Investment evaluation risks• To mitigate the risks, Keppel Land has established anetwork of local contacts so as to incorporateup-to-date market intelligence into the investmentevaluation process.• Keppel Land uses cross-disciplinary teams for investmentevaluation, including projects department for constructioncost estimate, marketing department for unit mix/layoutand product marketability, property managementdepartment for property management issues, and financedepartment for financing cost and structure.• Keppel Land has implemented independent riskassessment as part of the investment evaluation processto ensure that risks are thoroughly considered.6. Project management risks• To ensure good product quality, Keppel Land has a rigoroustender evaluation process, engages quality assuranceconsultants to check contractors’ design; retains control ofthe appointment of critical sub-contractors and has a qualitycontrol system in place.7. Human resources risks• Keppel Land has completed identification of keypositions and competencies, and has implementedsuccession planning.• Identification and nurturing of talent is an ongoing process.Talent management programmes are in place to developand retain high potential staff.8. IT risks• Keppel Land has developed a knowledge-based portalthat collates data from different sources within the Groupinto a centralised, user-friendly web-based resource.• Keppel Land is considering the implementation of anenterprise information system to facilitate budgeting andforecasting, financial accounting and scenario planning.9. Financial risks• Keppel Land uses financial instruments such ashedges and swaps to minimise interest rate andforeign exchange risks.10. Shareholder relationship risks• Keppel Land continues to practise good corporategovernance to maintain shareholders’ interestsand confidence.• Keppel Land actively engages analysts, fund managersand investors to provide the investment community withup-to-date information about the Company.11. Business interruption and catastrophic loss risks• In preparation for an Avian flu pandemic, Keppel Land hasimplemented a system to allow staff to work from homewith access to corporate applications. The businesscontinuity plans are in place and drills will be conductedto test the effectiveness of these plans.• Keppel Land has identified and will equip a recovery sitefor use by staff in the event of a disruption to operations.90 Risk managementKeppel Land LimitedReport to Shareholders 2006