STATEMENT ON RISK MANAGEMENT AND INTERNAL CONTROL During FY2022, the Group operates within an enterprise risk management framework. An Executive Committee (“EC”) that comprises Executive Directors of the Company and appointed key management personnel has been established to assume the following functions:- a) To supports the Board in fulfilling its responsibility for identifying significant risks and ensuring the implementation of appropriate systems to manage the overall risk exposure of the Group; and b) To review and recommend the Group’s risk management policies and strategies for the ARMC’s consideration and recommendation for the Board’s approval. The main functions and duties of the EC include, but are not limited to:- (i) Provides oversight and direction to the Group risk management process which includes:- • Evaluating and identifying new risks; • Reviewing and updating the Risk Register and ensuring that significant risks are being responded to appropriately; and • Monitoring the Group’s risk exposures and ensuring the implementation of management action plans to mitigate significant risks identified; (ii) Evaluates the effectiveness of the risk management processes and support system to identify, assess, monitor and manage the Group’s key risks; (iii) Meets with senior management on a semi-annual basis to discuss and deliberate on the significant risks affecting the Group within the context of the business objectives and strategy; (iv) Establish Group risk management guidelines and policies and ensure implementation of the objectives outlined therein and compliance thereto; (v) Recommends for the Board’s approval, the Group risk management policies, strategies and risk tolerance levels, and any proposed changes thereto; and (vi) Reviews significant investment proposals. A risk management report is tabled for review and acceptance by the ARMC and Board annually or at shorter intervals where necessary. The report identifies principal risks affecting or are likely to affect the Group, and the appropriate systems and/or actions to manage the risks. Kimlun Corporation Berhad | Registration No. 200901023978 (867077-X) 59
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