VITASORA HEALTH LIMITED ANNUAL

Risk Management

Risk Management The Board is responsible for overseeing the establishment and implementation of the risk management system, and for the reviewing and assessing the effectiveness of the Company’s implementation of that system on a regular basis. The Board and senior management continue to identify the general areas of risk and their impact on the activities of the Company. The Board has established a formal process in relation to the maintenance of an internal risk register which is updated and reviewed by the Board at its monthly meetings. The potential risk areas for the Company include: › Reliance on key personnel. ◦ Implement succession planning and retention strategies. ◦ Ensure cross-training and knowledge-sharing to mitigate risks associated with reliance on specific individuals. › Efficacy, safety and regulatory risks of medical devices. ◦ Maintain a rigorous quality assurance program and adhere to all relevant regulatory standards. Vitasora Health Limited 14 ylno esu lanosrep roF V I T A S O R A H E A L T H L I M I T E D · A N N U A L R E P O R T 2 0 2 6 ◦ Conduct ongoing clinical trials, post-market surveillance, and regulatory monitoring. › Financial position of the Company and the financial outlook. ◦ Diversify revenue streams, conduct regular financial forecasting, and build financial reserves. ◦ Monitor cash flow and manage liquidity prudently. › Domestic and global economic outlook and share market activity. ◦ Diversify market presence across regions and sectors. ◦ Monitor economic indicators and adjust strategies accordingly. › Changing government policy (Australian and overseas). ◦ Engage with policymakers, monitor policy changes, and adapt strategies as needed. ◦ Diversify operations to mitigate the impact of policy shifts in any single jurisdiction. › Competitors’ products and research and development programs. ◦ Invest in R&D, market analysis, and strategic partnerships to stay competitive. › R&D Tax Incentive Regime. ◦ The Group is exposed to the risk of changes to the Australian Government’s R&D Tax Incentive regime, which may reduce the value or timing of future R&D incentive receipts and adversely affect cash flows. › Market demand and market prices for medical device technologies. ◦ Continuously analyse market trends, adjust pricing strategies, and diversify product offerings. › Environmental regulations. ◦ Comply with environmental r