K & S CORPORATION LIMITED ANNUAL

Risk Management

Risk Management Consistent with ASX Principle 7, the Company is committed to the identification, monitoring and management of material risks in the business. Those material risks include a full spectrum of financial, strategic, compliance, climate-related, and operational risks. While not wishing to stifle the entrepreneurial endeavours of Senior Executives, the Board takes a relatively conservative approach to risk. The Board requires that Management have in place a system to identify, monitor, and manage the material business risks faced by the Company. The management systems in place as part of the risk management controls include: • Capital expenditure commitments above set limits obtain prior Board approval. • Financial exposures are controlled and the use of any derivatives or hedging arrangements must be approved by the Board. • Occupational health and safety standards, chain of responsibility, and management systems are monitored and reviewed to achieve high standards of performance and compliance with regulations. • Periodic external audits and internal reviews of the Company’s safety management system to comply with the requirements of the Company’s self-insurance licence for workers compensation. • Regular external audits of the Company’s maintenance management system, basic fatigue management system, and mass management system to comply with the National Heavy Vehicle Accreditation Scheme (NHVAS) business rules. • Business transactions are properly authorised and executed. • A comprehensive annual insurance programme, including external risk engineering survey and action plans. • Annual budgeting and monthly reporting systems for all business units, which enable the monitoring of progress against performance targets and the evaluation of trends. • Appropriate due diligence procedures for acquisitions and divestments. • Disaster management and business continuity systems for key IT systems and recovery plans, including specifically cyber security risks. • Documentation and regular review of business wide risk identification and mitigation strategies. • The completion by executive managers and divisional managers of ‘representation letters’ in connection with the certification by the Managing Director and Chief Financial Officer that the Company’s financial reports present a true and fair view, in all material respects, of the Company’s financial c