163 GOVERNANCE | STATEMENT ON RISK MANAGEMENT & INTERNAL CONTROL RISK GOVERNANCE & OVERSIGHT The Governance, Risk Management and Compliance (“GRC”) Department is responsible for establishing, coordinating, and implementing the Group’s ERM Policy Statement and Framework to ensure that our internal risk management processes are kept up-to-date and sufficiently robust to manage risks effectively. In addition, the GRC Department monitors and reports key risk issues to the MSC and escalate to the BRSC on a quarterly basis. Yinson’s ERM Policy Statement and Framework identifies, evaluates, monitors, and manages risks encountered by the Group. Our risk governance structure facilitates risk identification and escalation whilst providing assurance on the key risks and controls to the Board. It elaborates and assigns clear roles and responsibilities within each line of defence and facilitates the implementation of the updated ERM Policy Statement and Framework. The current governance structure that assumes the roles of risk and governance perspective is further explained below: Line of defense Governance Structure Descriptions 3rd line of defence • Governance of ERM Policy and Strategy, provide oversight and ensure establishment of ERM processes. • BRSC - Oversee and approve the companywide risk management and sustainability practices. • AC - Provide an objective view and independent report on the effctiveness of ERM and internal control system to the Board. • Internal Audit - Provide Independent Audit Report on ERM and internal control effectiveness. Board of Directors (Board) Board Risk & Sustainability Committee (BRSC) Audit Committee (AC) Internal Audit 1st line of defence • To assist MSC in managing risk related measures or issues / concerns. • Monitor and report all types of risk to the MSC. Risk Owner Risk Coordinator Corporate YR RO YP YGT Farosson 2nd line of defence • Monitor ERM Policy Implementation, risk reporting, and action plans. • To assist MSC in managing risk related measures or issues / concerns. • Monitor and report all types of risk to the MSC. Management & Sustainability Committee (MSC) Business Unit’s Advisory Board Group Chief Strategy Officer (CSO) Group Governance, Risk and Compliance (GRC)
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