05 / HOW WE ARE GOVERNED 01 02 03 04 06 07 08 09 119 CORPORATE GOVERNANCE OVERVIEW STATEMENT Group Board Risk Committee The GBRC comprises three (3) INEDs and one (1) NINED and is chaired by an INED other than the Chairman of the Board. Details on the GBRC’s composition, as well as its members’ attendance at the GBRC meetings during the FYE 31 December 2025 are provided on pages 8 and 101 of this Integrated Annual Report 2025 and in Section B of the CG Report which are available on KIBB’s website at https://www. kenanga.com.my/investor-relations/agm2026. The GBRC was established to support the Board in meeting the expectations on risk management as set out in BNM’s Policy Document on Risk Governance. It also assists the Board in the implementation of a sound remuneration system, by examining whether incentives provided by the remuneration system take into consideration risks, capital, liquidity and the likelihood and timing of earnings, without prejudice to the tasks of the GNC. In addition, the GBRC supports the Board in carrying out the oversight governance function of sustainability risks and opportunities and its underlying ESG matters of the Group. The functions and responsibilities of the GBRC are set out in its Terms of Reference which is available on KIBB’s website at https://www.kenanga.com.my/investor-relations/corporategovernance/. During the FYE 31 December 2025, the GBRC had deliberated, reviewed and made appropriate recommendations to the Board for approval, pertaining to key matters as stated below. • Proposed Interim Dividend for the FYE 31 December 2024 • 2024 Performance Appraisal of Group Chief Risk Officer (“GCRO”) of KIBB • 2025 Balanced Scorecard for GCRO of KIBB • Inclusion of Managing Key Risks and Opportunities in Integrated Annual Report 2024 • ICAAP 2024 (with BNM Semi-Annual Stress Testing Report as at 31 December 2024 Embedded) • Pillar 3 Disclosure as at 31 December 2024 • BNM Semi-Annual Stress Testing Report for Position as at 30 June 2025 • Annual Review of Underlying Suitability Assessment (“USA”) – Master Framework and USA – Linear Combination Product Programme • Revisions of the following: - Technology Risk Management Framework - Multi-Asset Investment Product Programme - FMPF – Conventional - Climate Change Risk Management Framework - Operational Risk Management Framework - Operational Risk Scenario Analysis Framework - Contingency Funding Plan for Year 2025 - Risk Appetite Framework • Cyber Incident and Response Drill Stress Test Exercise Report • Re-assignment of Ownership and Revision of the FMPF • Adoption of Fair Value to Profit and Loss for Products Issued by KIBB under the FMPF • Technology Risk Stress Test – Cyber Incident Response (Stress Test #2 and Reverse Stress Test) Report • Changes of Market Risk Limits for Equity Markets for Financial Year 2026 and Beyond Besides approving the 2024 Performance Appraisal and 2025 Balanced Scorecard for the Head of Independent Credit Review (“ICR”) and ICR Plan 2025, the following updates had also been tabled to the GBRC during the FYE 31 December 2025, for its deliberation and notation: • Risk Management Reports • Business Continuity Plan and Disaster Recovery Plan Test Matrix 2025 • Ageing Report for Treasury Bonds, Held-for-Trading and Available-for-Sale Portfolios as at 30 November 2024 and 31 December 2024 • Kenanga Research Macroeconomic Outlook Summary • Climate Risk – Stress Testing and Scenario Analysis Report • Operational Risk Capital Charge Assessment for Year 2024 • Investment Portfolio Updates by Kenanga Private Equity Sdn Bhd • ICR’s Post Approval Review of Kenanga Capital Sdn Bhd’s Loans and Share Margin Financing • Operational Risk Scenario Analysis Assessment 2025 • Revisions of the following: - Composition of the Group Risk Committee - Operational Risk Scenario Analysis Procedure - Operational Risk Key Risk Indicator Procedure - Reporting Approach for Operational Risk Events • Gap Analysis and Action Plan vis-à-vis the SC’s Guidelines on Technology Risk Management • Scenario Risk Based Assessment 2025 for RENTAS System • KIBB’s Onboarding Process of High-Risk Clients • Update on the Business Case for the Establishment of Equity Product Origination • Scenario-Based Risk Assessment 2025 for SWIFT System
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