Enterprise Risk Management (ERM)

ERM IS THE ESTABLISHMENT OF A FRAMEWORK TO MANAGE ORGANIZATIONAL RISK. IN 2022,

ANSA McAL began to implement the roll out of a new ERM framework throughout the Group on a phased basis. A phased approach will ensure key risks (R) and opportunities (O) within each sector are identified and treated with to achieve the target risk profile. R&Os are monitored within the operating companies and by the C-suite Executive. The Board is apprised of significant risks within, and emerging risks facing, the Group which may have sector or enterprise-wide impact. Significant enterprise risks are those that pose a threat to ANSA McAL and its operating companies’ strategies, business models or viability.

The Group Risk Team has been coordinating training sessions for all Sectors. This includes an ERM Awareness session (100% completed) and technical training sessions which are in progress (80%) and will be completed by Quarter 1, 2023. The technical training involves coaching on the development of risk registers.

CORPORATE HEAD OFFICE

Enterprise Risk Management (ERM) Implementation

• Complete Sector ERM roll out (Q1 2023)

• ERM Software System (Q4 2023)

• ERM Maturity Assessment (2023)

The Sectors have commenced drafting their risk registers by department, specific to their objectives. All risk registers will go through a risk validation exercise and a consolidated Group risk register can be compiled and reviewed on a quarterly basis to ensure all the risks are well understood and managed, a process that will be made simpler with the implementation with ERM Software. High-level Risk Dashboards have been developed and implemented for the Automotive Sector and some companies in the Beverage Sector. Additional Sector Risk Dashboards will be finalized following the completion of respective Risk Validation Sessions.