Enterprise Risk Management (ERM)

The role of ERM is to oversee that a sound ERM framework is in place to effectively identify, monitor, assess, and manage key business risks. The risk management framework shall guide the Board in identifying units/business lines and enterprise-level risk exposures, as well as the effectiveness of risk management strategies.

Internal Controls

With the leadership of the Company’s Chief Financial Officer (CFO), internal control is embedded in the operations of the company and in each business unit (BU), thus, increasing their accountability and ownership in the execution of the BU’s internal control framework. To accomplish the established goals and objectives, BUs implement robust and efficient process controls to ensure:

For the year 2022, Robinsons Residences and Robinsons Homes reported a combined net pre-sale of Php16.96 billion, 57% higher than the previous year. This is primarily attributed to the strong launch performance of four (4) new residential projects, namely, SYNC N Tower, Sierra Valley Gardens Building 3, Woodsville Crest Pine in Parañaque, and AmiSa Private Residences Tower D. Net sales take-up from JV projects also expanded by 58% to Php8.99 billion from Php5.68 billion in 2021.

Acknowledgements

As we take on the road ahead from a position of strength, we would like to express our deepest gratitude to our Board for their ongoing guidance and encouragement. We are also grateful to our shareholders, business partners, patrons, customers, and communities for their continued trust and support.

Lastly, we would like to thank our employees for their invaluable contribution to the results and progress we have achieved.

• 1. Compliance with policies, procedures, laws, and regulations,
• 2. Economic and efficient use of resources,
• 3. Check and balance and proper segregation of duties,
• 4. Identification and remediation of control weaknesses,
• 5. Reliability and integrity of information, and
• 6. Proper safeguarding of company resources and protection of company assets through early detection and prevention of fraud.

Adequate and Timely Information

To enable the Directors to properly fulfill their duties and responsibilities, Management provides the Directors with complete, adequate, and timely information about the matters to be taken up during their meetings. Information may include the background or explanation of matters brought before the Board, disclosures, budgets, forecasts, and internal financial documents. If the information provided by Management is not sufficient, further inquiries may be made by a Director to enable him to properly perform his duties and responsibilities. The Directors have independent access to Management and to the Corporate Secretary.

The Directors, either individually or as a Board, and in the performance of their duties and responsibilities, may seek access to independent professional advice within the guidelines set by the Board.

Accountability and Audit

The Board ensures that its Shareholders are provided with a balanced and comprehensible assessment of the Company’s performance, position, and prospects on a quarterly basis. Interim and other reports that could adversely affect its business are also made available in the Company website, including its submissions and disclosures to the SEC and to the Philippine Stock Exchange (PSE). Management formulates the rules and procedures on financial reporting and internal control for presentation to the Audit Committee in accordance with the following guidelines:

• 1. The extent of its responsibility in the preparation of the financial statements of the Company, with the corresponding delineation of the responsibilities that pertain to the External Auditor, should be clearly defined;
• 2. There is an effective system of internal control that will ensure the integrity of the financial reports and protection of the assets of the Company for the benefit of all Shareholders and other Stakeholders;
• 3. On the basis of the approved Internal Audit Plan, Internal Audit examinations should cover, at the minimum, the evaluation of the adequacy and effectiveness of controls that cover the Company’s governance, operations, and information systems, including the reliability and integrity of financial and operational information, effectiveness and efficiency of operations, protection of assets, and compliance with contracts, laws, rules, and regulations;
• 4. The Company consistently complies with the financial reporting requirements of the SEC;
• 5. The External Auditor shall be rotated or changed every five (5) years or earlier, or the signing partner of the External Auditing firm assigned to the Company, should be changed with the same frequency. The Corporate Internal Audit Head should submit to the Audit Committee and Management an annual report on the Corporate Internal Audit Department’s activities, responsibilities, and performance relative to the Internal Audit Plan as approved by the Audit and Risk Committee. The annual report should include significant risk exposures, control issues, and such other matters as may be needed or requested by the Board and Management. The Corporate Internal Audit Head should certify that he conducts his activities in accordance with the International Standards on the Professional Practice of Internal Auditing. If he does not, the Corporate Internal Audit Head shall disclose to the Board and Management the reasons why he has not fully complied with the said documents; and
• 6. The Board, after consultations with the Audit Committee, shall recommend to the Shareholders an External Auditor duly accredited by the SEC who shall undertake an independent audit of the Company, and shall provide an objective assurance on the matter by which the financial statements shall be prepared and presented to the Shareholders.

Internal Audit

The Corporate Internal Audit is focused on delivering its mandate of determining whether the governance, risk management, and control processes, as designed and represented by Management, are adequate and functioning in a manner that provides a reasonable level of confidence that:

• 1. Employees’ actions are compliant with policies, standards, procedures, and applicable laws and regulations;
• 2. Quality and continuous improvement are fostered in the control processes;
• 3. Programs, plans, and objectives are achieved;
• 4. Resources are acquired economically, used efficiently, and protected adequately;
• 5. Significant financial, managerial, and operating information is accurate, reliable, and timely,
• 6. Significant key risks are appropriately identified and managed; and
• 7. Significant legislative or regulatory issues impacting the Company are recognized and properly addressed.

Opportunities for improving management control, profitability, and the Company’s reputation may be identified during audits.