MISC BERHAD INTEGRATED ANNUAL REPORT 2025 08 09 10 01 02 03 04 05 06 07 12 13 SEC 11 GOVERNANCE 10 224 www.miscgroup.com 225 www.miscgroup.com #deliveringProgress STATEMENT ON RISK MANAGEMENT & INTERNAL CONTROL In essence, the risk management processes are as follows: Based on these established processes, the key risk events identified were closely monitored and reported, with details of risk mitigations provided on pages 72 to 81 of this Integrated Annual Report. Risk Assessment in Decision-Making In institutionalising risk-based decision-making across the Group, the Risk Assessment in Decision-Making (RADM) Guideline sets out the requirement for strategic decision papers to be equipped with risk assessments to ensure that decision-makers make fully informed decisions. It aims to enhance the decision-making process through sufficient deliberation with a balanced view of the exposure associated with the decision. The risk assessment facilitates the identification of potential threats, enables risk prioritisation, and enhances preparedness by identifying relevant mitigations to address the risks. During the year, the BSRC deliberated risks related to proposed projects, investments, partnerships, divestment strategies, corporate exercises, and key business proposals prior to approval by the Board. Risks & Opportunities Business Plan (by Segment) Enterprise - Group’s Business Outlook & Strategy Sustainability Internal Context External Context External Environmental Analysis Risk Assessment Continual Improvement Risk Treatment Risk Monitoring Analyse Evaluate Identify Identify Risk Treatment Strategy Monitor KRIs Establish Target Risk Rating Risk Reporting Identify New Mitigation for Each Identified Risk Monitor Risk Update through Risk Information System STATEMENT ON RISK MANAGEMENT & INTERNAL CONTROL Risk Assessment for Projects and Investment Opportunities The Project Risk Assessment (PRA) Framework is a risk-based tool that thoroughly evaluates risks for new capital intensive and revenue based projects, and other investment opportunities, which enables the business to identify and implement appropriate controls to mitigate associated risks. The framework supports informed decision-making and reinforces a disciplined and structured investment practice. It is continuously reviewed and refined to maintain relevance and robustness in risk assessment throughout the project cycle. The PRA Framework for new capital intensive and revenue based projects, and other investment opportunities is outlined below: PRA Phase and Stage Gate Activities The PRA Phase and Stage Gate activities consider the project lifecycle, ensuring that new capital intensive and revenue based projects, and other investment opportunities are evaluated with risk assessment, mitigation, independent review, and lessons learned at key milestones for informed decision-making and monitoring. It encompasses phases such as opportunity assessment, bid submission and award, project execution, and operations. PRA Risk Area Risks for participation in new capital intensive and revenue based projects, and other investment opportunities are assessed using criteria that, at a minimum, focus on material risks, including commercial, execution, operational, country, and financial aspects. PRA Reporting Structure The risk assessment is deliberated by MISC’s PRA Sub-Committee (i.e., sub-committee of the MRC), and the BSRC for endorsement before the Board of Directors’ approval. PRA Phase and Stage Gate Activities PRA Risk Areas PRA Reporting Structure Opportunity Assessment Bid Submission + Contract Award Project Execution Operations Portfolio of Investment and Opportunities Project Risk Assessment Project Independent Review Project Lessons Learnt Post Implementation Economic Review Commercial Project Execution Country Financing and Project Economics Other Material Risks Operations and Maintenance Board of Directors Board Sustainability & Risk Committee Management Risk Committee Project Risk Assessment Sub Committee
RkJQdWJsaXNoZXIy NDgzMzc=