2023): TNB RISK MANAGEMENT FRAMEWORK & GOVERNANCE The BRC has approved the TNB Risk Management Framework that provides a structured and consistent approach to risk management across the Group. The implementation of the framework is governed through the TNB risk governance documents, which are guidance documents for the business entities across the Group to implement and integrate risk management into its business operations for informed decision-making and to achieve objectives and targets. The TNB Risk Management Structure described in the TNB Risk Management Framework governs effective risk management implementation in the Group. TNB Strategic Risks & Key Operating Risks The BRC approved 12 TNB Strategic Risks in the year under review. TENAGA NASIONAL BERHAD Integrated Annual Report 2023 172 EFFECTIVE AUDIT AND RISK MANAGEMENT Communication The BRC continues tocascade its tone from the top, and particularly in the year under review, through the first in-person Top Management Risk Forum held since the pandemic. The BRC 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. The BRC successfully launched the TNB risk slogan, “RISK - First In Mind”, during the forum and the slogan has been further cascaded to all levels of employees through various communication platforms. Statement on Risk Management and Internal Control The BRC jointly reviewed and endorsed the Statement on Risk Management and Internal Control with the BAC. Subsequently, the Board approved it for inclusion in the TNB Integrated Annual Report. This statement outlines the Group’s implemented risk management practices and internal controls. Additionally, it includes assurance from the President/CEO and Chief Financial Officer to the Board, confirming that the Group’s risk management and internal control system are operating adequately and effectively in all material aspects. (II) BSRC From 25 August 2023 onward, the BSRC