114 KEYFIELD INTERNATIONAL BERHAD 202001038989 (1395310-M) STATEMENT ON RISK MANAGEMENT AND INTERNAL CONTROL (cont’d) RISK MANAGEMENT SYSTEM (CONT’D) Heads of Department (“HODs”) perform reviews at least quarterly to identify and assess risks as well as implement approved risk action plans. The HODs shall escalate the material risk-related events to the Governance, Risk and Compliance (“GRC”) Division. The Head of GRC shall communicate, evaluate, manage, and report the risk assessment and action plans to the EC promptly. The Group’s risk management process is illustrated as follows: [2] SCOPE, CONTEXT, CRITERIA [1] COMMUNICATION & CONSULTATION [5] MONITORING & REVIEW [6] RECORDING & REPORTING [4] RISK TREATMENT [3] RISK ASSESSMENT Risk Identification Risk Analysis Risk Evaluation The ERM Framework serves as an official record of the Group's strategic approach to risk management, outlining its intentions, objectives, and commitments in managing risk. Recognising the evolving and dynamic nature of the business environment, the Board is committed to maintaining a balanced approach to risks and opportunities, ensuring sustainable growth, safeguarding shareholders’ interest and maximising returns. Our ERM process begins with effective communication and consultation with both external and internal stakeholders to understand their needs, expectations, and assess changes in the operational context. This engagement is integral to the development of risk criteria. Through this collaborative approach, relevant risks are systematically identified and documented in the Group's Risk Registers systematically. These Risk Registers provide comprehensive details, including the likelihood and potential impact of each identified risk, ensuring a structured and informed approach to risk management. The identified risks are classified into eight (8) categories, i.e. strategic risk, compliance risk, health and safety risk, environment and sustainability risk, financial risk, operational risk, reputation risk, and technology and cybersecurity risk.
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