Risk Management

RISK MANAGEMENT SYSTEM

The implementation of a risk management system is key to ensuring the long-term sustainability of the Lippo Group’s business, which is embedded within the Company and its subsidiaries. The Company also consistently communicates the risks it faces to all employees to encourage better collaboration in addressing these risks.

The Company adopts a sound risk management framework to achieve organizational objectives, which consists of:

1. A comprehensive risk management policy covering various risk areas faced by the Company, including Significant Risks, Material Risks, and General Risks.

2. An appropriate organizational structure with clearly defined roles and responsibilities across all levels.

3. Adequate risk management processes, including risk monitoring and control procedures.

4. Sufficient infrastructure to support business operations, such as Information Technology systems and Human Resources.

The Company continually anticipates potential risks arising from all business activities, both those that can be controlled internally and those beyond the Company’s control. By applying prudential principles, internal risks can be managed and minimized. Furthermore, to achieve stronger performance, the Company carefully identifies and mitigates external risks.