b'Risk ManagementOverviewAs an oil company, Staatsolie is exposed to a range of risks. They have the potential to impact our employees health and safety, the environment, our reputation, our community, our legal standing andthefinancialperformanceofStaatsolie.To ensure we continue with being able to meet our strategic objectives, and as part of our ongoing transition into a world-class enterprise ready to work closely with international partners, Staatsolie has implemented an Enterprise Risk Management (ERM) program with rigorous internal controls across our organization. The aim of our ERM program is to manage risk by identifying, quantifying, prioritizing and mitigatingrisksinordertosatisfyourdefinedriskappetiteandtolerancelevels.Theprogramis based upon ISO 3100 and COSO (Committee of Sponsoring Organizations of the Treadway Commission) principles.Risk Assessment & ManagementStaatsolies ERM process is built on a continuous sequence of activities that results in a better understanding of the risks we are exposed to and what we can do to reduce or eliminate theserisks.AspartoftheprocesswefollowclearlydefinedguidelinesinareasincludingRiskIdentification,RiskRatingandRiskEscalation.RISK MANAGEMENT PROCESSThe key categories of risk Staatsolie addresses are in theareasof:RiskIdentification StrategyHealth, Safety and EnvironmentMonitor & Risk Analysis OperationsReview Strengthen (quantification)Governance FinancialPricingRisk Treatment Risk Evaluation(mitigation) (prioritization)38'