CORPORATE GOVERNANCE REPORT Enterprise Risk Management (ERM) Framework We recognise the importance of a robust risk management framework to safeguard the interests of the Company and its shareholders. We have a comprehensive risk assessment process to identify, assess and mitigate key risks that may impact our businesses. Our risk management process is dynamic and adaptive, with a focus on anticipating and responding to the evolving landscape of challenges faced by our businesses. Management is actively engaged in reviewing and analysing key and other applicable risks such as ESG (including climate change) and legal risks. The Group has put in place an ERM framework to identify, assess, monitor, and manage key business risks in the short, medium and long term. The ERM framework sets out a common and consistent understanding of risks and risk tolerance limits across the Group, allowing the Board and Management to cascade the Company’s risk management philosophy and overall risk appetite as they establish business strategies and objectives. To facilitate knowledge sharing across various business areas and continuous improvement of key ERM processes, material risk events and corresponding controls are also captured and updated in a centralised risk repository. This repository supports analysis, risk monitoring and response, and facilitates risk assessments and dashboard reporting. Management feedback loops such as risk escalation protocols, quarterly risk management meetings and risk deep-dives ensure that changes to business priorities, operating environment and external threats are monitored effectively. ENTERPRISE RISK MANAGEMENT FRAMEWORK ERM INFRASTRUCTURE ERM PROCESS ERM REPORTS BUILDING A STRONG ERM CULTURE STRENGTHENING ERM CAPABILITIES Vision and Goals Oversight Structure Roles and Responsibilities Common Language Policies and Manuals Tolerances and Limits Technology and Tools Risk and Incident Registers Risk Reports Change Management Continuous Improvement Communication / Information Sharing Awareness / Training > Risk Reporting > Business Analysis > Risk Identification > Risk Strategies < Risk Assessment and Prioritisation Business Goals, Objectives and Strategies 96 ST ENGINEERING | ANNUAL REPORT 2024
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