Risk Officer facilitates the implementation of the TNB Risk Management Framework. Recognising the importance of sustainability in our business, the BRC Terms of Reference was reviewed, which led to the transformation of the BRC to the Board Sustainability and Risk Committee (BSRC), effective from 25 August 2023. Consequent to changes in the organisational structure in the fiscal year, the Chief Risk Officer (CRO) reports to the Chief Sustainability Officer with RMD being one of the departments in the newly formed Sustainability Division effective from 1 June 2023. Throughout the fiscal year, the BRC/BSRC upheld its commitment to diligent oversight, convening nine (9) meetings to address various risks and opportunities associated with investment proposals, strategic initiatives, and operational dynamics. These meetings also encompassed a thorough review of TNB business entities’operational risk profiles and in-depth deliberations on KRI. Moreover, the BRC/BSRC also endorsed the SORMIC FY2022 and TNB Materiality Matrix FY2023, and approved the revised TNB Risk Dashboard FY2023, TNB Strategic Risks and the updated TNB Investment Risk Methodology. Business entities provided assurances to the BRC/BSRC regarding their risk management and internal controls, thus assisting the Board in its decision-making, particularly in managing potential risks and harnessing opportunities. Assurance (Internal and External Audit) Risk Manager Risk Owner Divisions, Departments and Subsidiaries TNB Board of Directors Chief Risk Officer Risk Management Department Group Executive Management Committee Group/Subsidiaries Risk Management Working Committee TNB Board Sustainability and Risk Committee (BSRC)* Note: * BRC changed to BSRC on 25 August 2023. TNB Risk Management Structure TENAGA NASIONAL BERHAD Integrated Annual Report 2023 186 STATEMENT ON RISK MANAGEMENT AND INTERNAL CONTROL Risk Assessment Process TNB business entities are guided by the TNB Risk Assessment Process that provides a structured approach to identify, analyse,