65 ANNUAL REPORT 2026 ENRA GROUP BERHAD STATEMENT ON RISK MANAGEMENT AND INTERNAL CONTROL The Board of ENRA is pleased to present this Statement on Risk Management and Internal Control (“SORMIC”), which provides an overview of the Group’s risk management and internal control framework for the FYE 2026 and up to the date of approval of this Annual Report, including the scope of coverage across material subsidiaries. This SORMIC has been prepared in accordance with Paragraph 15.26(b) of the MMLR of Bursa Securities and the Statement on Risk Management and Internal Control: Guidelines for Directors of Listed Companies issued by Bursa Securities. This Statement is also aligned with recognised international frameworks and good practices, including the Committee of Sponsoring Organizations of the Treadway Commission (“COSO”) Internal Control – Integrated Framework, ISO 31000 Risk Management Guidelines, and the Institute of Internal Auditors’ Three Lines Model. BOARD RESPONSIBILITY The Board recognises the importance of sound internal controls and risk management practices in safeguarding stakeholders’ interests and addressing the key risks relevant to ENRA Group. The Board affirms its overall responsibility for the Group’s system of internal control and risk management framework, which includes the establishment of an appropriate control environment and governance structure, as well as the review of its adequacy, effectiveness and integrity. The system is designed to manage, rather than eliminate, risks that may affect the achievement of the Group’s business objectives and accordingly provides reasonable, but not absolute, assurance against material misstatement, loss or failure to meet those objectives. The Group maintains an ongoing process for the identification, evaluation, monitoring and management of key risks and related internal controls throughout the financial reporting period. This process is supported by Management and the Internal Audit function, and is subject to regular review by the Audit, Risk Management and Sustainability Committee (“ARMSC”). While the Board retains overall responsibility for the Group’s risk management and internal control framework, the implementation of day-to-day risk management and internal control processes has been delegated to the Chief Executive Officer and Management. The Internal Audit function provides independent and objective assurance on the adequacy and effectiveness of the Group’s controls, ensuring that key controls are appropriately designed and operating as intended. GOVERNANCE STRUCTURE Board of Directors The Board provides overall oversight and sets the tone at the top for the Group’s governance, risk management and internal control framework. It approves the Group’s risk appetite, reviews the adequacy and effectiveness of the governance and control systems, and receives periodic reports on key risk and control matters. The Board ensures that appropriate actions are taken to address significant control weaknesses and risk exposures identified. Audit, Risk Management and Sustainability Committee The ARMSC assists the Board in overseeing the effectiveness of the Group’s internal control system and risk management framework. It reviews internal audit reports, monitors the status of agreed remediation actions, and assesses significant risk exposures against the approved risk appetite. The Committee also oversees the monitoring of key risk indicators (“KRIs”), sustainability-related metrics, and compliance matters, and reports its findings and recommendations to the Board. Internal Audit Function The Internal Audit Function provides independent and objective assurance on the adequacy and effectiveness of the Group’s governance, risk management and internal control processes. It operates on a risk-based approach and reports functionally to the ARMSC and administratively to the Chief Executive Officer. The function is responsible for reviewing both established and emerging risks and escalating significant audit issues to the ARMSC for further deliberation.
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