126 YINSON HOLDINGS BERHAD RISK MANAGEMENT AND INTERNAL CONTROLS The Board is responsible for maintaining and reviewing the effectiveness of our risk management activities from strategic, financial, and operational perspectives. Our risk management process identifies, assesses, responds to, reports on and monitors risks that threaten our ability to achieve our strategy and objectives within our risk appetite. The process for identifying, evaluating and managing our principal and emerging risks was in place for the financial year and up to the date of approval of this Report. The BRSC considers emerging risks as part of its regular risk management update. The Company follow the Three Lines of Defence approach to risk management. Risks are owned and managed within the business and reviewed at least quarterly. The Governance team reviews risks and controls, including those relating to information security, compliance and business continuity. IA assesses our risks and controls independently and objectively, feeding results into our reporting cycle through risk management governance structures. Risk management is essential in our global, innovation-driven business. It creates long-term shareholder value and protects our business, people, assets, capital and reputation. It operates at all levels throughout the organisation, across regions, business activities and operational support functions. Our approach encourages clear decisions about which risks we take and how we manage them, based on their potential impact on customers, financials, regulations, consumers, legal matters and reputation. As risk management and internal control systems are designed to manage rather than eliminate the risk of failure to achieve business objectives, they can provide reasonable but not absolute assurance against material financial misstatement or loss. C Integrity in corporate reporting and meaningful relationship with stakeholders The Board recognises its responsibility to consider the interests and concerns of Yinson’s stakeholder groups in its oversight and decision-making. In fulfilling this responsibility, the Board promotes a culture of openness, integrity and balanced judgement, to ensure stakeholder considerations are appropriately integrated into strategic, risks and sustainability-related deliberations. The management teams are responsible for executing stakeholder engagement at the business level. Material issues, emerging concerns and key insights arising from these engagements are escalated to the Board through structured reporting and governance channels. This enables the Board and its Committees to exercise effective oversight. While the Board acknowledges it may not be possible to meet all stakeholders’ expectations, it seeks to balance competing interests in a manner aligned with the Group’s values and purpose, business conduct, and long-term sustainable success. To support informed and effective governance, the Board incorporates external perspectives through guest speakers, dedicated training sessions and organisational deep dives. These inputs strengthen the Board’s understanding of the external operating environment, stakeholder dynamics and evolving expectations, enhancing the quality and effectiveness of its deliberations and oversight. Approach to stakeholder engagement, pg 46 GOVERNANCE
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