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, evaluateand treat risks. TNB business entities apply the process in a systematic, iterative and collaborative manner, drawing on the knowledge and views of stakeholders to develop and review their respective risk profiles. The TNB Risk Assessment Process was applied in the assessment of the TNB Strategic Risks based on the Reimagining TNB (RT) strategy and in consideration of internal and external factors. Below are the 12TNB Strategic Risks approved by the BRC/BSRC in the year under review: Category No. TNB Strategic Risk External 1. Catastrophic disruptions from external factors TNB faces the potential threat of unpredictable external events, which possess the capacity to significantly disrupt our business operations, profitability, and/or reputation. These events encompass various external factors, including but not limited to pandemics, cybersecurity attacks, economic collapses, and geopolitical risks. Although these occurrences have a low probability of transpiring, their unpredictability renders them capable of inflicting catastrophic impacts on our business operations.