Deleum Bhd

The Board Risk Committee (BRC) is chaired by an Independent Non-Executive Director. The BRC meets on a quarterly basis to review the effectiveness of the risk management process, to discuss matters relating to risk management activities and the reports produced therein, and to evaluate new and emerging risks together with the action and mitigation plans of the identified risks. [...] The duties and responsibilities of the BRC are guided by the Terms of Reference (TOR) accessible on the Company's corporate website. [...] The Management Risk Committee (MRC) was established in 2017 to manage risks on a dynamic basis given that all manner of risks is inherent in our businesses. This Committee provides a platform for members of the Senior Management team to bring their cumulative knowledge and experiences of the trading conditions, operating environment and regulatory requirements to facilitate the identification and monitoring of existing and emerging risks impacting the businesses. [...] The MRC which is governed by its TOR is chaired by the Group Managing Director (GMD) and meets on a monthly basis. The matters discussed at the MRC is reported to BRC on a quarterly basis. The MRC comprises of the GMD, Group Chief Financial Officer (GCFO) and the Chief Executive Officers (CEOs) of the business segments of the Group. [...] The MRC's duties include ensuring that: i. the Group's key risks are deliberated and taken into consideration in the Group's business strategies; ii. the process of risk identification up to the mitigation plans are appropriately considered; iii. the risk framework including the strategies, policies and action plans are effectively implemented; and iv. the monitoring and reporting to the BRC and eventually to the Board on the risk activities is undertaken on a quarterly basis.

The Management Compliance & Risk Committee ("MCRC") functions as Deleum's primary champion for risk management, compliance, and sustainability matters at both the strategic and operational levels. The MCRC meets periodically based on a structured agenda, which includes identification of key risks and mitigation plans. [...] Increasingly, risks associated with ESG practices, including management approach to material concerns is also being duly considered. This is due to the possibility of such factors having a significant impact on financial and business performance of Deleum, as well as its brand reputation. [...] The linkage between ESG risks and business impacts will be further assessed, strengthened, and translated into KPIs and targets to mitigate/manage risks in FY2022.