STATEMENT ON RISK MANAGEMENT & INTERNAL CONTROL In line with paragraph 15.26(b) of the Main Market Listing Requirements of Bursa Malaysia Securities Berhad, and guided by the Statement on Risk Management & Internal Control Guidelines for Directors of Listed Issuers, the Board is committed to preserve and uphold a sound system of risk management and internal controls as well as good corporate governance throughout Tropicana Corporation Berhad (“TCB” or “Company”) and its subsidiaries (“the Group”). RESPONSIBILITIES OF THE BOARD The Board of Directors (the “Board”) of Tropicana Corporation Berhad (the “Group”) is highly committed to maintain a sound system of risk management and internal control in the Group. The Risk Management Framework includes the ongoing process of identifying, evaluating, responding, managing and monitoring significant risks that may affect the Group’s business performance, ensuring that optimum operational function is maintained at an acceptable risk appetite while striving to achieve Tropicana’s overall strategic objectives. The Board endorses the Group’s risk management framework; delegating primary responsibilities for the implementation of the framework across the Group’s business operations to the Risk Management Committee, the Risk Management Department and Business/Operations Head. The Board acknowledges and approves the ongoing process of identifying, evaluating and managing all significant risks faced by the Group that has been in place for the year and up to the date of approval of this Statement for inclusion in Annual Report. In view of the inherent limitations in any system of the risk management and internal control processes, the said system, therefore, is put in place to provide reasonable, but not absolute assurance, against material misstatements, financial losses, defalcations or fraud. During FY 2023, the Risk Management and Sustainability Committee (“RMSC”) reviewed, appraised and assessed the controls and action in place to mitigate and manage the overall Group’s risk exposure, as well as raised issues of concerns and recommended mitigating actions. The RMSC had presented a summary of its deliberations and decisions to the Board on a quarterly basis. During the financial year, the adequacy and effectiveness of the system of internal controls was reviewed by the Audit Committee in relation to the internal audits conducted by Group Internal Audit, as well as control issues reported by the external auditors. The Audit Committee deliberated on the audit issues and the actions taken by Management, and a summary of these deliberations has been presented to the Board. KEY FEATURES OF THE RISK MANAGEMENT FRAMEWORK Risk Management Framework The Group has implemented an Enterprise Risk Management (“ERM”) Framework to address a spectrum of activities that assess the inherent risk profile inherent in the business’s nature. As a failure to adequately address these risks could compromise the Group’s objectives and sustainability. The framework classifies risks concerning strategic, operational, financial, and compliance aspects, in line with the Group’s business objectives. The Board reiterates its endorsement of the Group’s risk management framework and maintains continuous oversight of organizational risks and opportunities, with the assistance of the RMSC. This oversight includes periodic reviews to ensure the integrity of systems and controls for identifying, analysing, evaluating, managing, and monitoring significant financial and non-financial risks. The Group’s risk management practice is benchmarked against the ISO 31000:2018 Risk Management- Principles and Guidelines, and is designed to embed ERM into key activities, initiatives and processes of the Group. People, Systems, Operations Corporate Governance Performance Management Budgeting Strategic Planning Risk Management Risk Identification Risk Prioritisation Risk Monitoring Risk Assessment Risk Controls Risk Reporting Risk Management Framework 161 GOVERNANCE
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