SINGAPORE CHINESE CHAMBER OF COMMERCE FOUNDATION

NOTES TO THE FINANCIAL STATEMENTS – 31 DECEMBER 2022

7. RELATED PARTY TRANSACTIONS

Related

Related entities refer to entities where the Foundation’s committee members are either the directors or members of those entities.

8. FINANCIAL RISK MANAGEMENT OBJECTIVES AND POLICIES

The Foundation is exposed to financial risks arising from its operations and the use of financial instruments. The key financial risk is liquidity risk. The members of the Committee of Management review and agree on policies and procedures for the management of the risk, which are executed by the management.

The following provides details regarding the Foundation’s exposure to the above-mentioned financial risk and the objectives, policies and processes for the management of the risk.

Liquidity risk

Liquidity risk is the risk that the Foundation will encounter in meeting financial obligations due to shortage of funds. The Foundation’s exposure to liquidity risk arises primarily from mismatches of the maturities of financial assets and liabilities. The Foundation’s objective is to maintain a balance between continuity of funding and flexibility by monitoring and maintaining a level of cash and cash equivalents deemed adequate by the management to finance the Foundation’s operations and mitigate the effects of fluctuations in cash flows.