Section 7 UEM Edgenta Berhad GOVERNANCE 240 KEY FEATURES OF RISK MANAGEMENT FRAMEWORK RISK APPETITE The amount of risk that the Company is prepared to accept or retain in pursuit of its business objectives and value Risk Assessment Methodology Risk Governance and Structure Clarify objectives Communicate Identify risks Assess risks Respond to risks Establish context Monitor, review & report risks Board of Directors Board Governance and Risk Committee Risk Management Committee Risk, Integrity & Compliance Department Risk Owners (Company/Joint Venture/ Business Unit/Division/ Department/Function/ Project/Process & etc.) Risk Management Unit Committee Information & risk reporting Policy and review As part of continuous improvement efforts, the RMF will be expanded to incorporate the ESG Risk Management Framework and key elements of ESG-related risks. Risk Management Approach The Group’s risk management approach adopts a process which entails a consistent and systematic approach in the identification, assessment, monitoring and reporting of risk exposures. The risk management process is applied throughout the whole of the Group (enterprise level) or to any part of a business (i.e., divisions, departments, functions, business units and projects). The risk management approach comprises sequential steps of activities that are interrelated and iterative as follows: a. Set / clarify business objectives Set and understand the objectives for the Group and/or its business. b. Establish the context Define the context and boundaries within which the Group and/or the business operates. c. Risk Identification Identify risks together with their respective causes and consequences which could affect / impact the achievement of the Group and/or business objectives. d. Risk Assessment Identified risks are prioritised to determine the overall effect on the Group and/or business by evaluating the potential impact on business objectives should a risk materialise together with the likelihood of its occurrence. STATEMENT ON RISK MANAGEMENT AND INTERNAL CONTROL
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