Currency and Interest Rate Outlook

K KASIKORNTHAI KBank Risk Management Structure ธนาคารกสิกรไทย 开泰银行 KASIKORNBANK ■The Bank's organization is structured to facilitate all aspects of risk management; each business unit's responsibilities and segregation of duties are clearly identified in accordance with good internal-control practices ■ Approve risk appetite and all risk management policies and guidelines Board of Directors Risk Oversight Committee Audit Committee Operating Committee Credit Risk Management Sub-committee Credit Process Management Sub-committee Asset and Liabilities Management Sub-committee Market Risk Management Sub-committee Capital Management Sub-committee Operational Risk Sub-committee Business Continuity Management Sub-committee Information Technology Strategy Sub-committee Digital Oriented Risk, Data and Cyber Security - and IT Risk Management Sub-committee ■ Oversee effectiveness of consolidated risk management framework ■ Ensure effectiveness of overall risk management of the financial conglomerate ■ Establish risk management policies and risk appetites. Set risk limits for significant aspects of the various risks ■ Formulate strategy for the organization and resources to be used for the risk management operation, in line with the risk management policy. This strategy must enable the effective analysis, assessment, evaluation, and monitoring of the risk management system ■Credit Risk Management Sub-committee, Sustainable Development Sub- committee and Corporate Governance Committee oversee project financing requests that could have adverse impacts on the environment and society Business Units CBS/DNW/PBG/ CMB/IBB/WBG/CSI/ DAS/ICB/MMT/TWG/ CPD/TS/CSF/KBTG Risk Management and Control Function ERM Internal Audit ADD ■Business units are responsible for continuous and active management of all relevant risk exposure, to be in line with its returns and risk appetite ■Risk management is responsible for providing independent and objective views on specific risk-bearing activities to safeguard the integrity of the entire risk process. Control units are set to ensure that risk levels are in line with our risk appetite ■Internal Audit is independent and responsible for evaluation to add value and improve the effectiveness of risk management, control, and governance processes of the Bank and its subsidiaries CBS Corporate Business Division, DNW = Distribution Network Division, PBG = Private Banking Group, CMB = Capital Markets Business Division, IBB = Investment Banking Business Division, WBG World Business Group, CSI = Corporate Strategy and Innovation Division, DAS = Data and Analytics Division, ICB = Integrated Channels and Business Solutions Division, MMT = Marketing Management Division, TWG = Transaction and Wealth Banking Division, CPD = Credit Products Division, TS = Central Treasury Department, CSF = Customer and Enterprise Service Fulfillment Division, KTBG = KASIKORN BUSINESS - TECHNOLOGY GROUP, ERM = Enterprise Risk Management Division, ADD = Audit Division K KASIKORNTHAI KBank Credit Risk Management Process ธนาคารกสิกรไทย 开泰银行 KASIKORN BANK The Bank continues to enhance credit risk management processes to promote risk strategies with justified risk-return tradeoff within the rapidly changing economic environment Portfolio Management ■ Determine portfolio-by-design taking into account risk-adjusted return trade-off ■Manage portfolio according to the Bank's risk appetite and concentration risk management (Country, Industry, Large Customer Group) ■ Perform stress testing to identify impacts to portfolio and proactively prepare appropriate management actions Origination Monitoring Collection & Recovery ■ Enhance decision making/support tools for more efficient return and risk evaluation ■ Setup specific prescreening criteria for potential industries ■ Enhance customer income validation process ■ Monitor customer behavior and detect early warning signs ■Leverage National Credit Bureau information for effective credit monitoring ■ Ensure credit condition compliance (e.g. insurance, capital injection, project progress) ■Take prompt action to prevent credit deterioration บริการทุกระดับประทับใจ ■ Efficient collection and follow-up of customers with late payments ■Restructure viable customers to prevent NPLs ■Foreclose pledged assets to recover loan loss 56

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