Investor Presentaiton

Risk management Formalised risk management framework ° Risk management cycle consistent with ISO 3100:2018 Incorporates use of Bow-Tie methodology as part of the risk assessment process • Network risk management includes the identification of network failure modes and their criticality as a core element Provides visibility of any uncertainties to the achievement of plans, priorities and the ability to work to Ausgrid's corporate values • Provides assurance to management that the business critical controls in place are designed and operating effectively Risk appetite statement 12 Risk Themes - assessed against the following Risk Appetite Definitions RISK APPETITE DEFINITIONS Risk Adverse Risk Sensitive Risk Neutral Avoid risk tasking wherever possible Limited risk taking Calculated risk taking Engage with risk pursue opportunities Risk Seeking RISK THEME 1. People, Health & Safety Risk Adverse 2. Customer Risk Sensitive Regular reporting including emerging risks, key risk indicator trends and risk treatment action status 3. Reputation Risk Sensitive 4. Cyber and Physical Security Risk Adverse 56 5. Environment Risk Sensitive 6. Regulatory & Compliance Risk Sensitive CAUSES Hazardous Event 10. INHERENT RISK 7. People - Conduct Risk Adverse 8. People Workforce & Culture Risk Sensitive 9. CONSEQUENCES Network Operations Risk Sensitive 10. Finance Risk Sensitive 11. Information and Communication Technology Risk Neutral (ICT) Operations 12. New Business Risk Seeking PREVENTIVE CONTROLS Lower the probability of event occurring Risk Assessment MITIGATION CONTROLS Lower the consequence if event occurs Limit of indemnity General liability $860 million per occurrence Bushfire liability $860 million per occurrence • Full failure to supply $180 million ⚫ Professional indemnity $50 million 41 Ausgrid

View entire presentation