58 YINSON HOLDINGS BERHAD Key risk Value impact Strategic response Material matters Project Execution Risk L S M • Delays and cost overruns reduce project returns and weaken EBITDA generation. • Execution failures weaken Yinson’s ability to secure future contracts, affecting revenue visibility and competitiveness. • Project disruptions compromise timely delivery of strategic objectives and reduce market confidence. • Strengthen project management controls, milestone governance and real‑time monitoring. • Implement robust procurement practices, supplier diversification and early procurement to manage costs and secure long‑lead items. • Enhance readiness reviews, constructability assessments and collaboration with experienced contractors to improve execution assurance. HS BP SM Investment Risk L S M • Capital‑intensive and long‑horizon projects may constrain liquidity and limit flexibility to fund growth opportunities. • Early‑stage renewables and new growth ventures may deliver lower returns or face impairment, reducing profitability and asset value. • Volatile market conditions and shifting commercial assumptions can widen the gap between projected and actual returns. • Apply disciplined investment criteria to assess commercial viability, risk‑return profiles and alignment with strategic objectives. • Prioritise opportunities with clear sustainable‑return pathways and continuously review portfolio performance to optimise capital deployment. • Reinforce financial discipline through forecasting, monitoring and cost‑control measures. BP Macroeconomic and Market Risk L S M • Unpredictable political, economic, social, legal and environmental shifts can weaken project viability, disrupt operations and impact financial performance. • Insufficient assessment of country‑specific risks increases exposure to unforeseen financial, operational and compliance challenges. • Regulatory changes, including subsidy adjustments, land‑use constraints or grid access limitations, may delay project delivery and hinder portfolio growth and revenue stability. • Conduct structured country‑risk assessments and detailed market due diligence. • Maintain focused market selection and deepen presence in priority markets with stable policy environment, bankable counterparties and visible long-term demands. • Engage proactively with local stakeholders and regulators to navigate changing market conditions and maintain project continuity. BP People and Culture Risk L S M • Misaligned values, cultural differences and inconsistent leadership practices can weaken workforce cohesion and reduce performance. • Reduced adaptability and organisational complexity may hinder execution quality and efficiency. • Low engagement, workforce instability and talent gaps can impair collaboration and productivity. • Embed Yinson’s culture and values through structured onboarding and regular Core Values workshops. • Build leadership capability through a defined leadership framework, targeted development programmes and mentorship initiatives. • Monitor engagement through regular surveys, proactively addressing concerns. HR TI AI Governance Risk L S M • Weak AI governance can lead to data integrity issues, operational errors and model‑driven misjudgements. • Greater reliance on AI increases cybersecurity exposure, heightening the risk of system breaches or manipulation, leading to operational disruptions. • Ethical, transparency and compliance lapses in AI usage may result in reputational and regulatory risks, reducing confidence in Yinson’s governance standards. • Establish Group‑wide AI governance and ethical-use framework to ensure transparency, accountability and responsible deployment of AI tools. • Strengthen data governance, model validation and cybersecurity measures to safeguard AI systems against inaccuracies, misuse and external threats. • Implement human‑in‑the‑loop oversight, periodic AI risk assessments and clear escalation protocols to maintain control and oversight over AI‑enabled decisions. GE DR Yinson’s principal risks take into consideration the external environment, the nature of our long‑term contracts, the capital‑intensive nature of our projects, and our strategic expansion across our offshore production, renewables and green technologies businesses. These risks are assessed for their potential impact on value creation, strategic delivery and long‑term resilience. Governance and internal control processes relating to these risks are covered in the Statement on Risk Management & Internal Control, while business-specific market drivers, risks and opportunities are discussed in detail in the Market landscape section. Statement on Risk Management & Internal Control, pg 129; Market landscape, pg 59 Stable Decreasing Increasing VALUE CREATION AT YINSON KEY RISKS AND MITIGATION S Short-term M Medium-term L Long-term Key risks as assessed in May 2026.
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