CH OFFSHORE LTD. ANNUAL

Risk Management

RISK MANAGEMENT GRI 201-2, 205-1 CHO adopts an integrated ERM Framework, grounded in the Committee of Sponsoring Organisations of the Treadway Commission (“COSO”) framework, to systematically identify, assess and manage the full spectrum of risks facing the Group — including financial, operational, strategic, governance, health and safety, sanctions-related, industry-related and climate-related risks. The ERM Framework incorporates insights from peer benchmarking, industry standards, stakeholder engagement and outcomes of the annual materiality assessment, ensuring that its processes remain responsive to evolving internal and external risk drivers. 51 Annual Report 2025 Risk governance is overseen by the Board and the ARMC, which conduct formal risk reviews on a biannual basis, supplemented by additional reviews as required. The Board evaluates the effectiveness of the ERM Framework, ensuring alignment with the Group’s strategic objectives, risk appetite and regulatory expectations. Management and departmental heads support this oversight by identifying emerging risks, assessing changes in the operating environment and implementing mitigation measures. The ERM Framework provides a structured process for assessing risks across all major categories: • Financial risks – including liquidity management, credit risk, currency exposure and supply chain cost volatility. • Operational risks – such as business continuity, supply chain resilience, IT and cybersecurity, vendor diversification and force majeure preparedness. • Health and safety risks – including safe work practices, emergency preparedness and measures to mitigate heat and weather-related risks. • Governance and compliance risks – including policy compliance, sanctions-related exposure and ethical conduct. • Industry-related risks – including market conditions and sectoral transitions. Risk mitigation activities include financial resilience measures, operational continuity planning, technology and cybersecurity enhancements, health and safety controls, supply chain diversification and governance safeguards. This ensures a holistic and forward-looking risk posture across the Group. The Group’s approach to climate-related risk management involves systematically identifying, assessing, prioritising, and mitigating these risks through integration into its ERM Framework, supported by scenario analysis and ongo