ESG Report 2025

16 Risk Management 5.1 The United Laboratories has established a comprehensive risk management system covering strategic, operational, financial and compliance areas. Through systematic risk identification, assessment and response, the Group seeks to keep risks within an acceptable range and provide a solid safeguard for business development. 5.1.1 Risk Management Structure The United Laboratories has established a Risk Management Committee comprising three Independent Non-executive Directors and two Executive Directors. The Committee is responsible for overseeing and reviewing the Group's risk management and internal control systems, assessing risks associated with major decisions and putting forward recommendations for improvement. Under the Committee, the Risk and Internal Control Department serves as the executive body and is responsible for embedded risk management of major risks across the Group, supporting both listing compliance externally and value creation and protection internally. Review risk management policies Review the effectiveness of the risk management system Assess risks of major decisions Regularly assess the Group's risk profile and propose improvement recommendations Establish and improve the functional system of the risk management organisation Enhance risk management systems and procedures Promote performance assessment of risk management for management personnel at all levels Promote risk management concepts and cultivate risk awareness Decision- Making Level Execution Level Risk and Internal Control Department Coordination Level Various Business Units / Functional Departments 5.1.2 Risk Management Process and Methodology The United Laboratories follows a systematic risk management process comprising four stages: risk identification, risk assessment, risk response and risk reporting. Each year, the Risk and Internal Control Department conducts an annual risk review and forecasts potential risks for the following year, forming a risk assessment report to support management decision-making. Risk Management Committee Identify risks within their respective areas Implement risk response measures Cooperate with the Internal Audit and Risk Control Department to carry out risk management work The United Laboratories International Holdings Limited 2025 Environmental, Social and Governance Report