Constance Hotels Services Limited | Annual Report 2025

115 ANNUAL REPORT 2025

Reporting with Integrity

Residual Risk Exposure by Risk Type Based on average residual risk scores

9.1

6.5

6.4

6.1 6.3 6.0

5.5

5.1

4.4

6. Reporting with Integrity

3.1

3.0

The Directors reaffirm their responsibility for preparing the annual report including the annual financial statements in compliance with International Financial Reporting Standards and the Companies Act 2001, and considers the annual report, taken as a whole, fairly balanced and understandable. The Board confirms its commitment in providing therein necessary information for shareholders and stakeholders to assess CHSL’s position, performance and outlook. More comprehensive information pertaining to the organisation’s financial, environmental, social and governance position, performance and outlook are included in the About section and Sustainability Report sections of the Annual Report.

Cyberse curity and

Geographi cal Concen tration

Industry & Markets

Political, Economic and Social

Financial Management

Legal, Regulatory & Ethical

Talent

Social Re sponsibility & Sustaina bility

Health & Security

Reputation

Uncontrolla ble Events

Information Governance

Risk Governance and Internal Control

Principal Risks and Mitigation Measures

The Company implements various policies and mitigation initiatives to effectively counter the principal risks to which it is exposed, as elaborated in this Corporate Governance Report and in the following tables. The Company also contributes to the Directors’ and Officers’ Liability Insurance policy.

7. Risk Governance and Internal Control 7.1. Risk Management Risk Profile

Legend

Capital Impacted

Financial

Human

Intellectual

Social & Natural

Risk Trend

Decrease

Unchanged

Increase

Risks facing the Company are classified by type and subsequently grouped into Strategic, Financial, Operational, Compliance, or Hazard categories, in accordance with the National Code of Corporate Governance for Mauritius (2016). The following charts provide an overview of the Company’s risk profile as at 31 December 2025, based on the average residual risk values.

Risk

Industry and Market

Capital Impacted

Residual Risk Exposure 31 December 2025

Risk Group

Risk Trend (2025 vs. 2024)

Strategic

Residual Risk Exposure by Risk Group Based on average residual risk scores

Risk Criticality Based on residual risk scores

Description

The tourism industry, particularly the hotel sector, may be negatively impacted by changes in international demand for hotel rooms and associated services, an uncompetitive open-sky policy, increases in the supply of rooms and other forms of accommodation, government policies and regulations, and other industry-related factors.

High 4%

Compliance Score: 5.5 (19%)

Strategic Score: 6.4 (22%)

Low 22%

Mitigation Measures

The Company proactively manages industry and market risks through its global network and regular engagement with stakeholders and government bodies. Risks are monitored daily and reviewed quarterly by the Board. To stay competitive, the Company focuses on continuous innovation, creative development, and product improvement. It adapts swiftly to market changes, guided by socio-economic and political insights, while maintaining visibility through media, public relations, digital platforms, and partnerships. Customer trends are tracked via collaboration, reviews, and surveys, supported by a strong marketing strategy and ongoing risk management.

Financial Score: 6.4 (23%)

Operational Score: 4.8 (17%)

Medium 74%

Hazards Score: 5.3 (19%)