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. Sustainability2. Inability to keep pace with Environment, Social & Governance (ESG) developments and transitions globally Corporations worldwide face increase risks in transitioning to a low-carbon and climate-resilient economy. It is vital that we align to global ESG commitments and frameworks given TNB’s role as Malaysia’s primary power utility. Failure to do so will impede our business growth in addition to eroding market confidence in TNB to be a utility that is able to provide sustainable energy solutions. This will adversely impact investors’ confidence, stakeholder’s trust and company reputation. Regulatory 3. Unfavourable energy transition & climate change policies & regulations Energy Transition regulatory risks pose significant challenges for power utilities. The shift towards renewable energy sources and decarbonisation initiatives may require costly infrastructure upgrades and technology investments. Evolving regulations can impact revenue streams and profitability, especially if incentives or subsidies change. Stricter emissions standards might necessitate the retirement of existing assets or