29 MANAGING OUR KEY ESG RISKS GOOD GOVERNANCE SUSTAINABLE ECONOMIC GROWTH ENVIRONMENTAL STEWARDSHIP EMPOWERING PEOPLE AND COMMUNITIES APPENDIX Risk Management We acknowledge that the impacts of climate change are a non-diversifiable risk to Kenanga’s business activities and financial operations. In 2023, the CCRM Framework was revised to include BNM Climate Risk Management and Scenario Analysis requirements, enhancing climate risk assessment and classification within the Framework. We are gradually working towards better understanding of climate impact on our business operations and have further expanded our risk exposure analysis. R Damage property Legal Financial risk Disrupt trade Changes in public policy and strategy Impacts collateral values Refinancing risk Reduce productivity Claims Reputational risk Increase financial risk to the Group Increase in operational cost MANAGING OUR KEY ESG RISKS Climate Change Risks Physical Risk Arises from acute (event-driven) and chronic (long term shift) climate-related events that: Transition Risk Occurs as a result of adjustment to a low-carbon economy. The adjustment may translate into: Liability Risk Stems from legal risk and claims on damages and losses incurred from inaction or lack of action that results in the effects of physical and transition risks:
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