The ERM programmanagement team develops, oversees and executes the company’s ERM methodology. This team is structurally independent from business lines, ensuring risk management is embedded across the organization with clear accountability for implementation and oversight. Executive ERM sponsors report priority risk issues that might require attention to the board or its committees. An ERM committee, consisting of members of management from various departments, is responsible for assisting the audit committee with overseeing the ERM process and its implementation. Enterprise Risk Management Sands has adopted the Committee of Sponsoring Organizations (COSO) ERM framework and utilizes a methodology comprising risk identification, risk assessment, risk response, and risk monitoring and reporting. Identification of risk priorities is facilitated on an ongoing basis through risk assessments conducted in collaboration with operational risk owners throughout the company. Relevant risks are escalated to be addressed through the ERM process when appropriate. Risks escalated through the ERM process have formal mitigation Risk Governance The board of directors and audit committee oversee establishment of the company’s risk strategies and objectives, including the company’s ERM process and activities, and are accountable for their effectiveness. The audit committee monitors the ERM process to ensure performance according to established strategies and objectives and addresses major risk exposures with management. The audit committee also assesses the steps management has taken to monitor, control and manage these exposures and evaluates the company’s risk assessment and risk management guidelines and policies. Each board committee monitors and addresses risks within the scope of its charter and expertise. Committee members meet regularly with executive leaders responsible for risk management in the areas identified as high risk to engage in ongoing dialogue, review risk audit findings, establish control systems, evaluate progress and assess emerging trends and developments to inform company action. plans that are reviewed and approved, with periodic updates provided on the progress of their implementation. Risks with potential material impact on the company are outlined in the Sands Annual Report, which can be found on our website at https://investor.sands.com. Nonmaterial risks that are not included in the ERM process are managed and monitored by business units responsible for the identified area of risk. Results of environmental and social assessments also are integrated into the company’s ESG materiality assessment for further management of risks, as needed. This process provides a foundation for developing strategies within the People, Communities and Planet pillars of our corporate responsibility program. Each strategy is supported by a topical brief, action plan, ESG benchmarking and other mitigation tools as needed. Where appropriate, we also have developed specific goals to address priority issues. Our process for assessing and managing human rights risks can be found on page 76. Supply chain risk assessment can be found on page 88. R I SK MANAGEMENT Through a comprehensive system of reporting, controls and mitigation procedures, our ERM process allows us to manage the potential for loss as well as reduced opportunities for gains, which may adversely affect achievement of our company’s objectives. NOMI NAT I NG AND GOVERNANCE COMMI T TEE ESG oversight Oversight of succession plans for the company’s senior management AUD I T COMMI T TEE General enterprise risk management Financial risk exposure Information and data security risk COMPL I ANCE COMMI T TEE Compliance with laws and regulations Code of Business Conduct and Ethics and other company policy oversight COMPENSAT I ON COMMI T TEE Compensation policy oversight BOARD OF D I RECTORS AT A GL ANCE P I L L AR Governance STRATEGY Risk Management Risk Governance Ensure strict oversight and execution of the risk management process Enterprise Risk Management Establish the culture, capabilities and practices to manage companywide risks Climate Risks and Opportunities Analyze impacts and responses related to climate change 2022 ESG REPORT 42
RkJQdWJsaXNoZXIy MTYzNzU=