PT SAPTA BORNEO UTAMA
Governance Documentation Package
SBU-GOV-003 Strictly Confidential Final / Published

# Risk Management Charter

Enterprise Risk Management (ERM) Charter establishing governance, risk oversight responsibilities, risk appetite principles, monitoring procedures and escalation protocols.

## Purpose

This Charter establishes the framework for identifying, assessing, monitoring and managing risks that may affect PT Sapta Borneo Utama's strategic objectives, operations, financing activities and stakeholder interests.

## Risk Governance Structure

Body | Responsibility
--- | ---
Shareholders | Strategic oversight
Board of Commissioners | Independent risk supervision
Board of Directors | Risk governance accountability
Risk Management Committee | Risk monitoring and review
Management Team | Operational risk implementation

## Risk Categories

Risk Type | Description
--- | ---
Strategic Risk | Business strategy execution risk
Financial Risk | Liquidity, funding and market risks
Operational Risk | Process and operational failures
Project Risk | Construction and implementation risk
Legal & Compliance Risk | Regulatory and contractual obligations
ESG Risk | Environmental and social impacts
Reputational Risk | Stakeholder confidence and perception

## Risk Appetite Principles

- Preserve financial stability.
- Protect project financing obligations.
- Maintain regulatory compliance.
- Avoid excessive concentration risk.
- Prioritize safety and environmental protection.
- Support sustainable long-term growth.

## Risk Assessment Process

Step | Activity
--- | ---
1 | Risk Identification
2 | Risk Assessment
3 | Risk Prioritization
4 | Control Design
5 | Monitoring & Reporting
6 | Continuous Improvement

## Escalation Framework

Risk Level | Escalation
--- | ---
Low | Management Review
Moderate | Risk Committee Review
High | Board Review
Critical | Immediate Board & Shareholder Notification

## Reporting Requirements

Report | Frequency
--- | ---
Risk Register Update | Monthly
Risk Committee Report | Quarterly
Board Risk Report | Quarterly
Enterprise Risk Review | Annual

## Charter Statement

The Company is committed to maintaining a robust risk management culture aligned with international governance standards, institutional financing requirements and sustainable value creation.