RISK MANAGEMENT POLICY

         Based on the current operations of QTC Energy Public Company Limited and its subsidiaries, the company faces changes in external factors such as economic conditions, political situations, increased competition, changes in relevant business laws, fluctuations in raw material costs, and internal factors such as the company’s operational strategy, internal data management, and operational risks. The company places great importance on organizational risk management to ensure clarity and comprehensive management of the organization as a whole, aiming for efficiency, effectiveness, and driving the organization towards stable growth and business expansion, maintaining a stable financial position, and providing appropriate returns to shareholders. Additionally, the company integrates other management systems systematically throughout the organization, considering the company’s strategy. Therefore, the company sees fit to implement a risk management system with an operational framework and risk management procedures in line with the Committee of Sponsoring Organizations of the Treadway Commission (COSO) international standards, ensuring that stakeholders understand risk management principles and apply them appropriately.

         The company has established policies and procedures for risk management to guide risk management practices. The risk management team is responsible for analyzing and assessing the opportunities and impacts of risks that may affect the organization and finding measures to eliminate or mitigate those risks. The company has thus established the Enterprise Risk Management Policy as follows.

1. 1. Risk management is the responsibility of employees at all levels who must be aware of the risks in their operations within their departments and the organization and prioritize managing various risks to an adequate and appropriate level.
   2. Each department is responsible for assessing risks, setting risk indicators, preventive measures, and mitigating potential risks or losses, regularly monitoring and evaluating risk management, and preparing risk-related reports according to the operational framework and risk management procedures.
   3. The organizational risk management process must adhere to good standards and international practices to effectively manage risks that may impact the company’s operations, fostering development and consistent risk management practices throughout the organization. Risk management must be integrated into decision-making, strategic planning, work plans, and company operations, focusing on achieving the set objectives, vision, mission, and strategies.
   4. When employees identify or become aware of risks that may impact the company, they must immediately report those risks to relevant parties for further risk management.
   5. The company aims to continuously promote and support understanding of risk management processes and practices among executives and employees to instill awareness of the importance and shared responsibility in organizational risk management, making it part of the culture that leads to value creation.
   6. This policy must be reviewed annually, and any changes must be submitted to the audit committee for consideration and presented to the company’s board of directors for approval.

Approved by : The Company’s Board of Directors Meeting No. 8/2021
on November 9, 2021

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