PT. Sumberdaya Sewatama (“Sewatama”) is committed to integrated risk management in all aspects of the business and the company in an effort to maximize the achievement of company objectives, protect and increase value for shareholders and other stakeholders.

Enterprise Risk Management (risk management) is implemented in all lines of the Company through the application of a risk management framework that is supported by a risk-aware culture. The risk management framework at Sewatama includes aspects of identification, proactive systematic analysis of resource threats and strategic development plans as well as appropriate countermeasures and mitigations to minimize negative potential to the Company and maximize various opportunities and achievements.

Risk management will be implemented in all lines of the company through the application of a risk management framework that is supported by a risk awareness culture. Risk is inherent in all processes in business activities. This element must be managed properly and cannot be ignored. Every individual at Sewatama must be aware of and manage the risks that will arise through daily activities in each individual's job. The proactive attitude of every employee is required to be able to identify, escalate, and manage risks and potential risks through a formal and systematic approach.

A formal and systematic approach to managing risk that exists in companies today is best practice in organizational management. Sewatama has determined that a good formal strategic approach to risk management will increase accuracy in decision making, improve results and improve accountability and performance.

Every individual at Sewatama is responsible for risk management. For this reason, every employee is required to be aware of the risks associated with their work by proactively implementing and complying with the Risk Management Guidelines and the Company's Objective Achievement.

All members under Sewatama are required to know and comply with this Risk Management policy. Each Division under Sewatama is required to complete a monthly, quarterly and annual Risk Management Assessment using the Risk Assessment Standard template that has been provided.