ARC Committee and Management at KIDECO:

KIDECO recognizes the crucial importance of the adequate implementation of a risk management system for handling various business risks. The objective of this system is to ensure that risks that could impede KIDECO from achieving its business objectives are properly mitigated.

KIDECO manages its risks by implementing Enterprise Risk Management (“ERM”) throughout the organization. The KIDECO Board of Directors (“BOD”) is responsible for and plays a significant involved in ensuring the successful implementation of the risk management program. A top-down assessment is conducted by the BOD to promote high-level risk awareness.

Meanwhile, a bottom-up approach, following the Company’s ERM Procedure, enables departments to be responsible for their own risk assessment, which is reported to the Directors. This two-way assessment empowers the Boards and management to identify, manage, and mitigate risks from both management and operational perspectives. The corporate ERM team consolidates key risks and provides a report to the BOD and the Audit, Risk, and Compliance Committee (“ARC”) every quarter for their review. In general, KIDECO refers to ISO 31000 in implementing the risk management system.

The Audit, Risk, and Compliance Committee (“ARC”) Organization Structure will be inserted.