59 SECTION 3 VALUE CREATION INTEGRATED ANNUAL REPORT 2025 KEY RISK & MITIGATION The risk of legal, financial, and reputational damage arising from failure to comply with the complex web of laws and regulations across the jurisdictions in which we operate. This includes anti-bribery, competition, data protection, and trade sanction laws, as well as non-adherence to ethical business standards. REGULATORY RISK 3 Medium Non-compliance can lead to severe consequences, including substantial fines, contract terminations, imprisonment, and a significant erosion of stakeholder trust. In an era of heightened regulatory scrutiny, maintaining a culture of integrity is non-negotiable. We employ a multi-layered approach to ensure robust compliance and uphold ethical conduct. i. Certified Management Systems: We adhere to globally recognised standards, including ISO 37001 (Anti-Bribery) and ISO/IEC 27001 (Information Security), which provide a structured framework for our compliance efforts. ii. Robust Internal Controls: We enforce clear segregation of duties and have implemented guidelines aligned with the Malaysia AntiCorruption Commission (“MACC”) Act’s “TRUST” principles. Our whistleblowing policy provides a secure channel for raising concerns without fear of retaliation. iii. Continuous Training and Awareness: We conduct mandatory annual training for all employees, senior management, and members of the Board of Directors to reinforce our commitment to ethical conduct and keep our team updated on evolving legal requirements. iv. Proactive Due Diligence: We conduct thorough due diligence on all business associates and before entering any new jurisdiction to prevent associated risks. Risk Trends and Impacts Mitigation Measures The risk of harm to our people, the environment, and our assets due to the high-risk activities inherent in our operations. SAFETY RISK 4 Medium HSE incidents can have severe consequences, including harm to our employees and surrounding communities, environmental damage, and significant business disruption. They may also jeopardise our operational license, reputation, and the trust of our workforce and customers. Our goal is zero harm. We cultivate a deeply embedded safety culture, supported by certified management systems and disciplined operational controls. i. Culture and Systems: Our HSE Management System is certified to internationally recognised ISO standards. Through the Wasco i-Start programme, every employee is empowered to take personal ownership of safety and actively contribute to a safe working environment. ii. Operational Discipline: We enforce 12 Non-Compromising Rules across all operations to uphold critical safety standards. Key operational controls, including Job Hazard Analysis, Permit-to-Work, Energy Isolation, and Management of Change, are rigorously implemented to manage operational risks. iii. Proactive Assurance and Learning: We deploy proactive tools, such as CARE Cards (safety observations) and Risk Containment audits (violations of rules), to identify and address potential hazards early. We are committed to learning from every incident and near miss to strengthen our controls and prevent recurrence. iv. Emergency Preparedness: Comprehensive emergency and crisis response plans are maintained across our operations to ensure a swift, coordinated, and effective response when required. Risk Trends and Impacts Mitigation Measures
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