AEON Credit Service M Bhd

The Board Risk Committee ("BRC") assisted the Board in discharging the oversight responsibility for risk management in FYE2020 by reviewing the risk management framework, key risk indicators and risk mitigation measures for key focus areas, and compliance risk management periodically. [...] Review sustainability related matters, including the Sustainability Framework, material matters, sustainability performance and reporting.

In order to manage and attain our sustainability goals in the organisation, AEON Credit's Board Risk Committee ("BRC") continues to support the sustainability agenda and practices in the Company. The BRC oversees all principal businesses, financial, strategic and operational risks, driving risk management efforts organisation wide, as well as sustainability related matters including reviewing the overall sustainability plans, objectives and its performance. [...] The Board recognises the importance of pursuing a business sustainability agenda and sets the tone to promote sustainability practices by balancing Environmental, Social and Governance ("ESG") aspects of the business in decision making. The BRC is entrusted to review sustainability related matters including the Sustainability Framework, material matters, sustainability performance and reporting. Further details are set out in the Sustainability Statement of the Company in the Integrated Annual Report.

The Board Risk Committee ("BRC"), which also has purview over sustainability management, supports the Board in overseeing sustainability matters. The BRC is also responsible for reviewing sustainability policies and plans, and to monitor the performance of their execution. [...] Top Management involvement is realised through the Management Sustainability Committee ("MSC") which comprise the Chief Financial Officer, Chief Operating Officer, Chief Corporate Officer, Chief Credit Officer, Chief Risk Officer and Chief Information Officer. Our MD took over the MSC Chairmanship effective March 2024. In this role, he will be responsible for overseeing and driving improvements and execution of the Group's overall sustainability strategies and associated initiatives. [...] A Sustainability Working Committee ("SWC") comprising key management personnel from business/functional units supports the development of our sustainability strategies and executes sustainability initiatives. The SWC reports progress to and seeks guidance from the MSC and BRC, as the case may be, when required. The SWC also plays an important role in raising sustainability awareness and embedding sustainability practices across the Group's operations as well as embedding management practices to address any potential sustainability impact arising from operations.

Throughout the financial year, the Board remained committed to improve on our governance practices through better transparency, responsibility and accountability. From the onset of the pandemic, the Board conducted detailed discussions and maintained active oversight of the developing COVID-19 situation. We deliberated on measures and controls put in place including the financial assistance given to customers affected by the pandemic as well as its impact on the Group, its employees and business partners. [...] In further enhancing the Group's Governance, AEON Credit has established the Anti-Money Laundering ("AML/CTF") monitoring system for on-going due diligence and at the same time, we continue to ensure integrity and safeguard against corruption by abiding to the established Anti-Bribery Management System Policy, Whistle-Blowing Policy and Entertainment and Gift Policy. [...] The Board directs the Group in the conduct of its affairs and provides sound leadership to the Management. We have 10 Board members (including four female directors) with a diverse range of competencies and extensive corporate experience. The make-up of our Board reflects diversity of gender, nationality, age, skills and expertise. Independent Directors form the majority of the Board.