166 YINSON HOLDINGS BERHAD | INTEGRATED ANNUAL REPORT 2024 YINSON’S RISK MATRIX Yinson Group Top 5 Risks Top 5 risks Descriptions Key controls and mitigation in FYE 2024 Energy transition risk Energy transition risk in essence refers to the energy sector’s shift from fossil-based resources (e.g. oil, coal, natural gas, etc.) to renewable energy (e.g. solar, wind, hydropower, etc.). Examples of energy transition risks may include climate-related risks pertaining to market demand for fossil fuels, regulatory changes and reputational risks. • Establishment of Yinson’s Climate Goals Roadmap and various key strategies to manage the energy transition. • Expansion and growth of Yinson’s renewables and green technologies business units. • Operationalisation of carbon abatement strategies for carbon-heavy assets (i.e. closed flaring, hydrocarbon blanketing system, combined cycle technologies to maximise energy efficiency and utilising low-emission alternatives for energy source). • Continuous improvements in ESG Rating scores i.e. FTSE4Good Index, Morgan Stanley Capital International (“MSCI”), Sustainalytics and Dow Jones Sustainability Index (“DJSI”) for S&P’s Corporate Sustainability Assessment (“CSA”). • Provide assurance on the carbon intensity performance for Yinson Production and renewable energy generation for Yinson Renewables. Corporate funding risk Corporate funding risk refers to the risk that the Group may not be able to source sufficient funds (i.e. through equity, right issues, debt funding, etc.) to cover working capital and capital expenditure. Any inability to secure funding may lead to defaults on debt obligations or failure to meet repayment schedules. • Focused corporate finance teams led by the respective business unit CFOs tasked with the funding activities for their respective segments. • Securing loans or any other funding mechanisms to fund existing and future projects through engagement with various financial institutions. Cybersecurity risk Cybersecurity risk is the probability of the Group’s internal system/ applications being exposed to various cyber-attacks including hacking, ransomware, phishing, and others. A breach in our internal IT system security may result in financial loss, leakages, or loss of confidential or critical data. • Comprehensive documentation of incident response procedures in line with YHB Information Security Policy & Procedure. • Establishment of a strategic Cybersecurity Risk Management Roadmap for proactive threat identification and mitigation. • Robust development of IT Disaster Recovery Plan and Cyber Incident Response Plan for swift and effective responses to unforeseen events. • Documentation of IT Third-Party Risk Management Policy, ensuring a systematic approach to evaluating and managing risks associated with external entities. Risk Heat Map Risk Impact Insignificant Minor Moderate Major Catastrophic 1 2 3 4 5 Risk Likelihood Almost Certain 5 Medium (5) Medium (10) High (15) Critical (20) Critical (25) Likely 4 Low (4) Medium (8) High (12) High (16) Critical (20) Possible 3 Low (3) Medium (6) Medium (9) High (12) High (15) Unlikely 2 Low (2) Low (4) Medium (6) Medium (8) Medium (10) Rare 1 Low (1) Low (2) Low (3) Low (4) Medium (5)
RkJQdWJsaXNoZXIy NDgzMzc=