WASCO BERHAD 40 KEY RISK AND MITIGATION STRATEGIES REGULATORY The risk of legal, financial, and reputational consequences arising from failure to comply with industry-specific laws and regulations, including breaches of anti-competition, cybersecurity, ethics, and integrity laws (such as Malaysia Anti-Corruption Commission (“MACC”) or equivalent). This also includes violations of trade restrictions, embargoes, governmental sanctions, data protection laws, and non-adherence to ethical business standards. Risk Definition • Insufficient oversight, lack of segregation of duties, and inadequate checks and balances. • Failure to stay updated with current and relevant laws and regulations. • Inadequate communication of governance and compliance requirements, as well as roles and responsibilities, to employees, stakeholders, contractors, suppliers, and customers. • Costs of non-compliance, including penalties, fines, and/or imprisonment. • Financial losses, operational disruptions, and/or reputational damage. • Potential contract terminations or loss of future business opportunities. • Erosion of stakeholder trust and/or legal action from affected parties. Risk Trends and Impacts Potential Impact to the Group Existing Controls • Adoption of ISO 37001:2016 certification for anti-bribery management. • Implementation of guidelines on adequate procedures based on the MACC Act’s TRUST Principles for corporate liability compliance. • Annual training to educate employees, Directors, and Senior Management on bribery and corruption risks and implications to the Group, using Wasco’s internal learning platform (i-Learn) and external experts such as those from MACC/Malaysia AntiCorruption Academy (“MACA”). • Whistleblowing Policy and accessible reporting channels for stakeholders to raise concerns confidentially without fear of retaliation. • Regular communication on business activities to reinforce compliance awareness. • Audit and assurance processes to evaluate the adequacy, effectiveness, and compliance of existing controls. Proposed Action Plan • Continuously monitor and stay updated on amendments and changes to relevant laws, rules, and regulations. • Ongoing assessment and monitoring of the effectiveness of existing controls. Mitigation Measures Results of Mitigation Measures Medium
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