STATEMENT ON RISK MANAGEMENT & INTERNAL CONTROL SCOPE OF THIS STATEMENT This Statement on Risk Management and Internal Control, and the risk management practices described within covers the Company, its subsidiaries and its joint ventures. The Group did not have any associate companies during the financial year. RESPONSIBILITIES OF THE BOARD The Board of Directors (the “Board”) of Tropicana Corporation Berhad (the “Group”) remains firmly committed to upholding a robust risk management and internal control environment across the Group. In fulfilling this responsibility, the Board oversees the Group’s Risk Management Framework, which establishes a structured and continuous process for identifying, assessing, responding to, managing and monitoring significant risks that may affect the Group’s performance. Through this framework, the Group seeks to sustain effective operations within an acceptable level of risk appetite while supporting the achievement of Tropicana’s strategic objectives. The Board reviews and approves the Group’s risk management framework, while delegating primary responsibility for its execution across the Group’s business operations to the Risk Management and Sustainability Committee, the Risk Management Department and the Business/Operations Heads. The Board reviews and monitors the ongoing process for identifying, evaluating and managing all significant risks faced by the Group, which operated throughout the financial year and up to the date of approval of this Statement for inclusion in the Annual Report. In view of the inherent limitations of any risk management and internal control system, the framework is designed to provide reasonable, rather than absolute, assurance against material misstatements, financial losses, defalcations or fraud. The Board also oversees and monitors the Group’s risk appetite and tolerance levels when undertaking major investments, funding strategies and operational decisions. This enables the Group to preserve operational effectiveness within an acceptable level of risk while supporting the delivery of Tropicana’s strategic objectives. The risk appetite is reviewed periodically during the financial year to ensure continued alignment with the Group’s strategic objectives and prevailing market conditions. In discharging its responsibilities, the Board also reviews and monitors Management’s assessment of the Group’s principal and emerging risks, as well as the adequacy and effectiveness of the corresponding mitigation measures. During FY2025, the Risk Management and Sustainability Committee (“RMSC”) oversaw the review and assessment of the controls and mitigating actions established to manage the Group’s overall risk exposure. The RMSC also reviewed key matters of concern, challenged the adequacy of responses where necessary, and recommended further mitigating measures. Matters deliberated at the RMSC are subsequently presented at the Board level on a quarterly basis for oversight and further consideration. The Chairperson of the RMSC provides updates to the Board on the key matters discussed at the RMSC meetings, including those relating to the Group’s risk appetite. During the financial year, the Audit Committee reviewed and evaluated the adequacy and effectiveness of the Group’s internal control system based on internal audits carried out by Group Internal Audit, together with control issues raised by the external auditors. The Audit Committee also reviewed Management’s responses to the audit matters identified, deliberated on the remedial actions taken, and reported the outcome of its deliberations to the Board. Based on the reports and assurances received from the RMSC, the Audit Committee, Management, the Internal Audit function, and input from external auditors where relevant, the Board has conducted an annual review of the adequacy and effectiveness of the Group’s risk management and internal control system for the financial year under review. The Board is satisfied that the Group’s risk management and internal control framework remains appropriate and continues to operate effectively in supporting the Group’s strategic objectives. In line with paragraph 15.26(b) of the Main Market Listing Requirements of Bursa Malaysia Securities Berhad, and guided by the Statement on Risk Management and Internal Control Guidelines for Directors of Listed Issuers, the Board is committed to preserve and uphold a sound system of risk management and internal controls as well as good corporate governance throughout Tropicana Corporation Berhad (“TCB” or “Company”) and its subsidiaries (the “Group”). 217
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