Integrated Annual Report 2023 2 3 4 5 6 7 8 9 1 241 STATEMENT ON RISK MANAGEMENT AND INTERNAL CONTROL The Group adopts the following risk rating matrix to articulate the relationship between risk impact and likelihood: Risk Rating Risk Impact Likelihood Insignificant Minor Moderate Major Catastrophic Certain Medium Significant Significant High High Likely Medium Medium Significant Significant High Possible Low Medium Medium Significant High Unlikely Low Medium Medium Significant Significant Remote Low Low Medium Medium Significant e. Risk Response Risk treatment involves developing a range of responses and options for mitigating the risks. The Group adopts the 4Ts (Take, Treat, Transfer & Terminate) strategy in responding to the identified risks and qualifies these risks according to the acceptable levels by the relevant risk owners and stakeholders. TAKE TREAT TRANSFER TERMINATE Intentionally taking risk due to inherent/ unavoidable risk or to pursue/sustain higher returns, with informed approval by appropriate level Mitigation plans established to reduce the likelihood & impact Transfer the risk by moving the risk to third party but accountability still resides with Risk Owners Avoidance by not to proceed or continue with a particular activity or seeking alternative means to achieve objective f. Monitor, review and report risks Risk events and trends to be continually reviewed, assessed and monitored. Similarly, risk responses and mitigation plans are monitored continuously to ensure their relevance and effectiveness and are operating as designed and expected. g. Communication Communication is required for an effective risk management programme. The evolving business conditions continuously alters the risk profile of the Group and/or business, hence, frequent and explicit engagement and discussions about risk is vital to maintain continuous awareness and effective management of key risks.
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