Cromwell European REIT - Annual Report 2021

ENTERPRISE RISK MANAGEMENT RISK MANAGEMENT FRAMEWORK MATERIALITY ASSESSMENT • Identifies and prioritises risks and opportunities Sets risk appetite BOARD AUDIT AND RISK COMMITTEE Oversees, assesses and monitors enterprise risk management framework COMPLIANCE • Conducts independent examinations and evaluations of risk mitigation plans (policies, procedures, systems) and review to assess the appropriateness of the risk identification and measurement methodology • Promotes a strong governance culture RISK MANAGEMENT FRAMEWORK • Head of Risk, Compliance and Company Secretarial • Manages the development and implementation of Enterprise Risk Management Framework SUSTAINABILITY FRAMEWORK Head of Property and Chief Operations Officer Key reporting lines CEREIT MANAGER EXECUTIVE LEADERSHIP TEAM • Delivery of strategy • Take ownership of risks • Implement and execute risk management throughout CEREIT SUSTAINABILITY COMMITTEE Oversees CEREIT’s Sustainability Framework SUSTAINABILITY OBJECTIVES • Actions and metrics • Business plans RISK MANAGEMENT CEREIT and the Manager adopt an ERM framework which sets out the required components for managing risks in an integrated, systematic and consistent manner. The ERM framework and related policies are reviewed annually. A team comprising the CEO and other KMP is responsible for directing and monitoring the development, implementation and practice of ERM across the Manager, Property Manager and CEREIT. CEREIT and the Manager adopt a proactive approach to risk management, making it an integral part of its business – both strategically and operationally. This approach stems from the philosophy of seeking sustainable growth opportunities and creating economic value by ensuring only appropriate and well-considered risks are assumed. CEREIT’s ERM framework enables CEREIT to continue to respond effectively to the dynamic business environment and shifting business demands to seize new value-added opportunities for stakeholders. CROMWELL EUROPEAN REIT 185 ANNUAL REPORT 2021