CFM HOLDINGS LIMITED ANNUAL

Risk Management

RISK MANAGEMENT The Company does not have a Risk Management Committee. However, the Management regularly reviews the Group’s business and operational activities to identify areas of significant business risks as well as appropriate measures to control and mitigate these risks. The Management reviews all significant control policies and procedures and highlights all significant matters to the Board and the AC. Risk Appetite of the Group The Group relies on Management to monitor day to day operations. Key corporate decisions, such as investments or acquisitions of businesses are subject to Board approval. The Group’s performance is monitored closely by the Board periodically and any significant matters that might have an impact on the operating results are required to be brought to the immediate attention of the Board. The Group has also taken a strict stance towards avoiding any risks that might result in breaching relevant laws and regulations and risks that could adversely affect the reputation of the Group. Active efforts are also in place to manage risks within impact such as transferring them to third party insurers or having internal control procedures to better mitigate the likelihood of their occurrence. Risk Assessment and Monitoring The nature and extent of risks to the Group will be assessed regularly by key management personnel and risk reports covering top risks to the Group will be submitted to the AC when it arises. The Board has also received assurance from the CEO and the CFO that: (i) the financial records have been properly maintained and the financial statements give a true and fair view of the Company’s operations and finances; and (ii) the Company’s risk management and internal control systems are adequate and effective to address the financial, operational, compliance and information technology risks. MATERIAL CONTRACTS Catalist Rule 1204(8) Save for the Executive Directors’ service contracts, there were no material contracts, not being contracts entered into in the ordinary course of business, that were entered into by the Company and its subsidiaries that involved the interests of the CEO, any Director or controlling shareholder of the Company either still subsisting at the end of the financial year or if not then subsisting, entered into since the end of the previous financial year. NON-SPONSOR FEES Catalist Rule 1204(21) There were