SUSTAINABILITY STATEMENT CONT’D 26 GHL SYSTEMS BERHAD 199401007361 (293040-D) RISK MANAGEMENT All identified risks, including climate-related risks are strategically assessed and managed through our risk management process, which is integrated into the organisation’s Enterprise Risk Management (“ERM”) framework. This framework is in accordance with the ISO 31000:2018 Risk Management Guideline. 2. Establishing the context 3. Risk identification 4. Risk analysis 5. Risk evaluation 6. Risk treatment 7. Monitoring and review 1. Communication and consultation Risk assessment Embedding ESG risk into an ERM framework Building an effective ERM framework will provide GHL with essential data that is required to understand the scale and variables affecting ESG risks with strategies to manage and mitigate them effectively. Six key steps to consider include: 1. Coordination with all responsible parties; 2. Prioritization and ranking of the ESG risks; 3. Determining risk tolerance; 4. Defining and setting sustainability development goals (Sustainable Development Goals); 5. Aligning internal and external communications; and 6. Monitoring risks and adjusting as needed. ESG risks may evolve over time or new ones may emerge. Therefore, it is critical to monitor these risks over time and adjusting strategies accordingly. This is facilitated by obtaining data from all ESG touch points at GHL.
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