strategy. 10. Failure to ingrain TNB culture in employees’ behaviour in supporting Reimagining TNB strategy and sustainability aspiration Culture molds the direction, beliefs and shared values that shapes employee (at all levels including the Board)’s perceptions, behaviours and understanding. Failure to ingrain the Reimagining Culture values in the organisation and processes may result in lower productivity, fraud and bribery or silo mentality. Physical Asset Risk 11. Failure to mitigate physical risks caused by climate change Physical climate change risks pose significant challenges to TNB in the form of extreme weather events, rising sea levels, and changing precipitation patterns that can damage infrastructure, disrupt operations and impact power generation, transmission and distribution. Failure to manage these risks can result in prolonged outages, increased operation and repair costs, regulatory penalties, reputationaldamage and impede long-term business sustainability. Supply Chain 12. Disruptions to supply chain TNB’s ability to ensure the security of supply depends on undisrupted procurement and distribution of resources needed to operate all its infrastructure. Delays or disruption resulting from supplier failure, transportation issues and geopolitical interventions may lead to delays in project delivery, prolonged electricity supply outages and increased costs. TENAGA NASIONAL BERHAD Integrated Annual Report 2023 188 The BRC/BSRC continues to cascade its tone from the top, and particularly in the fiscal year, through the first in-person T op Management Risk Forum held since the pandemic. The BRC/BSRC not only set the tone on the importance of effective risk management but also dialogued with 102 members of top and senior management in navigating a challenging risk landscape. Market experts such as the Head of Carbon Market, Bursa Malaysia, were invited to share insights on risk and opportunities related to the power utility industry. The TNB risk slogan, “RISK - First In Mind”, was launched by the