Purpose and Commitment

At Vertel Corporation risk management is a strategic priority essential to ensuring long-term stability, protecting stakeholder interests and enabling sustainable growth across all sectors. Our goal is not to eliminate all risks but to understand them, manage them proactively and integrate risk awareness into every decision made throughout the organization.

Scope of Application

This policy applies to all entities under Vertel Corporation, including the divisions in construction, entertainment and finance. It encompasses all levels of the organization, from the board of directors to frontline employees, and covers operational, strategic, legal, financial, reputational and technological risks.

Risk Management Principles

Vertel approaches risk from a perspective of opportunity as well as caution. The principles guiding this policy include accountability at all levels, transparency in risk reporting, early identification, structured evaluation and systematic response. Every employee is responsible for recognizing and communicating risks within their area of work. Management must embed risk awareness into their planning processes and day-to-day operations.

We operate under a framework that promotes a unified risk language across divisions and encourages the alignment of risk appetite with corporate objectives. Risks are measured by both their likelihood and their potential impact, and controls are designed to reduce exposure to acceptable levels.

Risk Identification and Categorization

Risks are identified through regular assessments, project evaluations, market analysis, internal audits, and input from employees and stakeholders. Each risk is categorized into broad areas including operational disruptions, market volatility, regulatory changes, data breaches, environmental liabilities, project delays, financial mismanagement, and reputational harm.

Special attention is paid to cross-border risks and industry-specific challenges such as construction hazards, entertainment content liability and financial regulatory compliance. These are tracked and reviewed with tailored controls for each business unit.

Risk Assessment and Prioritization

Each identified risk is assessed using a standardized matrix that considers probability, severity and mitigation feasibility. High-impact risks are escalated to senior leadership and the board for direct oversight. Risk scores are updated periodically, particularly during organizational changes, global market shifts or crisis situations.

Decisions regarding new investments, partnerships or ventures must include formal risk evaluations. This ensures informed decision-making and reduces exposure to unmanaged threats.

Risk Mitigation and Response Strategies

Vertel implements internal controls, process checks, escalation protocols and business continuity plans to address specific risks. Response strategies include avoidance, reduction, transfer or acceptance, depending on the nature of the risk and its alignment with corporate risk appetite.

Each division maintains operational-level risk registers monitored by a risk officer and audited periodically. Crisis simulation exercises and contingency plans are required for high-risk departments, and third-party risks are managed through contract clauses and due diligence.

Roles and Responsibilities

The Board of Directors provides oversight and sets the overall risk tolerance for the organization. The executive leadership team ensures that risk policies are executed and adapted to evolving realities. A centralized Risk and Compliance Office coordinates the implementation of the framework and monitors compliance across all entities. Business units are responsible for maintaining awareness and documentation of risk in their operations.

Monitoring, Reporting and Review

All risks and control actions are documented in a centralized reporting system, which feeds into quarterly risk reports submitted to the board. Internal audit teams provide independent assurance on the effectiveness of risk management. KPIs and leading indicators are monitored regularly, and risk dashboards are used to inform real-time decision-making.

This policy is reviewed annually or whenever significant changes in law, business structure or global context occur. Vertel is committed to learning from past incidents and continuously strengthening its risk resilience.