39 INTEGRATED ANNUAL REPORT 2024 Overview of Wasco Berhad Key Messages Value Creation Commitment to Governance Sustainability Journey Financial Statements Other Information KEY RISK AND MITIGATION STRATEGIES INTRODUCTION Here at Wasco, our goal is to balance value creation with effective risk mitigation. Wasco adopts a risk-based approach to safeguard value and achieve corporate objectives, guided by a robust Enterprise Risk Management (“ERM”) process aligned with strategy formulation and execution. Following ISO 31000:2018, our risk management process identifies potential events that could impact the Group, reflecting our commitment to international best practices. This structured approach ensures consistency and resilience. Wasco has identified five Key Enterprise Risks (“KERs”) that may affect our strategic goals. We monitor these risks within the Group’s risk appetite and tolerance levels. The heatmap illustrates the residual risk ratings of the KERs, mapped by likelihood and impact. 1. Market 2. Regulatory 3. Health, Safety & Environment RISK DESCRIPTION: 4. Information 5. Talent Likelihood Level of Impact Wasco Q4 FY2024 Risk Heatmap Very High High Medium Low Likely 1 2 4 3 5 Probable Unlikely Rare Rare Moderate Major Significant MARKET The risk arising from the Group’s core operations in the oil and gas industry, which is associated with greenhouse gas emissions. • Significant assets have been accumulated over the years to service the sector. • Resources and expertise are focused on our core business. • Potential long-term market decline, which will impact the Group’s financial performance. • Challenges in securing financing for both capital expenditure and working capital from banks and other lenders. • Difficulty in raising capital through the capital market. • Decline in the Group’s market capitalisation. Risk Definition Risk Trends and Impacts Potential Impact to the Group Existing Controls • Businesses focus on securing projects related to gas, which is recognised as a cleaner energy source with a positive outlook. • Diversification of earnings to include other industries, including green energy and energy transition sectors. Proposed Action Plan • Actively pursue bids for gas, energy transition, and other industry-related projects. • As of 31 December 2024, the order book consists of 56.1% gas development/clean energy projects, 15.8% energy transition/green projects, and 6.8% from other industries. Mitigation Measures Results of Mitigation Measures High
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