MISC BERHAD INTEGRATED ANNUAL REPORT 2025 08 11 09 05 12 SEC 06 STRATEGIC REVIEW 10 07 13 01 02 03 04 80 www.miscgroup.com 81 www.miscgroup.com #deliveringProgress OUR RISKS AND MITIGATION STRATEGIES OUR RISKS AND MITIGATION STRATEGIES IMPACT MITIGATION STRATEGIES OPPORTUNITIES The Group’s strong cyber and information security governance ensures a trusted environment for safe adoption of digital technologies and building data-led capabilities. Effective cyber discipline boosts confidence among customers, regulators, and business partners, enabling and strengthening the Group’s resilience in digital collaborations • Elevated safety risks to personnel and assets if critical operational systems are compromised • Loss, corruption or unauthorised disclosure of critical data • Exposure to regulatory actions, litigation and financial losses resulting from data breaches or system failures • Major reputational damage and loss of trust among stakeholders • Adoption of industry standards, best practices and updated security controls to strengthen governance and safeguard operational and digital systems • Continuous cybersecurity assessments and monitoring, supported by incident detection and response capabilities, including the use of AI-enabled tools • Ongoing cybersecurity awareness programmes to protect digital identities and reinforce responsible user behaviour across the workforce • Enhancement of maritime cybersecurity guidelines and controls to address maritime operational risks • Maintenance of robust business continuity planning and cyber insurance coverage to minimise financial impact and enable timely restoration of critical services RISK TREND Digital enablement of operations, remote connectivity, increased use of third‑party platforms and evolving threat actor capabilities continue to raise cyber hazard intensity across critical infrastructure. The Group actively monitors and mitigates the potential for cyber incidents to disrupt operations, compromise sensitive information and affect business continuity R8 CYBERSECURITY RISK Evolving cyber threats, system vulnerabilities and data security breaches may disrupt the Group’s operations, compromise sensitive information and undermine stakeholder confidence in the resilience and integrity of its digital and operational systems Material Matters: M5 M10 M12 Key Capitals: Operating Environment: E3 E4 E5 E8 Strategic Pillars: SP1 SP2 SP3 Strong HSSE governance, culture, and contractor oversight help the Group operate safely in complex, regulated environments where safety and environmental performance are increasingly important. Consistent HSSE results allow the Group to stand out as a trusted operator, supporting its licence to operate and long-term partnerships • Loss of operating days and disruptions to business activities arising from incidents, investigations or enforced shutdowns • Financial and commercial losses from penalties, clean-up costs, contractual claims and potential loss of customers • Increased contract risk and weakened customer confidence due to unsafe operating conditions for personnel/workforce • Reputational damage affecting the Group’s standing with customers, regulators, partners and investors • Strengthening HSSE governance through the adoption, integration and enforcement of Group-wide policies and standards • Implementation of Generative HSSE Culture Awareness Programmes to embed a strong HSSE culture and promote conscious risk awareness across the workforce • Enhanced contractor management and performance oversight incorporating risk-based principles to manage third-party exposure • Continuous monitoring and management of HSSE risks across operations to protect people, asset uptime, contractual commitments and brand trust HEALTH, SAFETY, SECURITY AND ENVIRONMENT RISK R7 Health, safety, security or environmental incidents may impact the Group’s ability to conduct operations safely and reliably, maintain stakeholder confidence and meet regulatory requirements across its operating environments RISK TREND Regulatory expectations and stakeholder scrutiny on safety and environmental incidents continue to rise, while operational complexity across offshore, marine and project related activities increases the potential severity of HSSE events. The Group prioritises a strong safety culture to manage the transmission of HSSE risk and its impact on people, environment, assets and reputation Material Matters: M1 M2 M3 M4 M5 M11 Key Capitals: Operating Environment: E1 E3 E4 E5 Strategic Pillars: SP1 SP2 SP3
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