UOBI lays the groundwork for its goal of creating value and protecting all stakeholders through Good Corporate Governance (GCG). Through the principles of Transparency, Accountability, Responsibility, Independence and Fairness, UOBI runs its business in accordance with applicable rules and regulations and other best practices within the banking sector. With the aforementioned approach, we believe that UOBI will continue to be a leading and trusted bank in Indonesia.

Information regarding the corporate governance structure and composition, roles, trainings and education, remuneration, compensation received by the highest governance body and the impact or risk management can be found in the Corporate Governance section of this Annual Report.

Environmental, Social and Governance (ESG) Working Group

UOBI has an ESG Working Group which is tasked with reviewing relevant ESG-related topics within the banking context, identifying risks and opportunities, setting targets and objectives, reviewing emerging issues, compiling and assessing relevant data, and monitoring the progress of UOBI's sustainability-related programmes and initiatives. The ESG Working Group reports its performance and issues directly to the Board of Directors. The ESG Working Group members represent UOBI's business and supporting units whose activities deliver both positive and negative impacts on the environment, society and the economy. The ESG Working Group is coordinated by the Director of Finance and Corporate Services, and works closely with the Director of Wholesale Banking, Director of Compliance, Legal and Corporate Secretary, and representative members from various functions.

It is the responsibility of all UOBI employees to comply with the ESG Framework. The respective business and support units of UOBI are responsible for appraising the ESG issues in their relevant scopes and for taking appropriate steps to ensure that customers and suppliers also meet relevant policy requirements, wherever applicable.

UOBI understands the urgency of implementing good governance to protect the interests of our stakeholders and to maintain our integrity. One of the greatest concerns is the risk management of all our banking operations. UOBI continues to instill risk culture to all employees in every decision and action. In practice, we identify, measure, monitor and control various risks in the banking industry, including credit-related risks, market risks, interest rate risks, compliance risks, reputation risks and others. This is also in line with POJK No. 18/POJK.03/2016 concerning Implementation of Risk Management for Commercial Banks.

Our Policy and Commitments

UOBI's risk culture is built on our values of Honourable, Enterprising, United and Committed, and is core to our broader behavioural culture. Our Board of Commissioners and Board of Directors play pivotal roles in overseeing risk culture matters.

To ensure that Tone from the Top has been translated effectively into Tone from Above, all managers are responsible for promoting risk-focused behaviors within their teams. The senior management promotes understanding and practice of risk management throughout the organisation through regular communications, such as in person/face- to-face meetings, discussion groups and internal e-newsletters. All employees receive a number of of risk management trainings covering the following topics:

• risk culture and the Code of Conduct;
• anti-money laundering and countering the financing of terrorism;
• assessing and addressing operational risk;
• Fair Dealing;
• fraud awareness;
• IT security and cyber risk awareness; and
• the UK Bribery Act.

In addition to providing the aforementioned materials, UOBI also instills and promotes awareness and understanding of risk culture by implementing the following:

• incorporating risk culture and applying the Risk Management Framework;
• creating an e-learning on risk culture to emphasize and uphold a strong risk culture;
• conducting a self-assessment of the main business and support units to evaluate the risk culture within each unit; and
• adding questions regarding risk management in our employee engagement survey to assess understanding of the existing risk culture.

The active supervision of the Board of Directors and Senior Executive Officers on operational risk has been carried out regularly through Risk Management Committee (RMC) meetings by utilising various tools including:

• Key Risk and Control Self-Assessment;
• Key Operational Risk Indicators;
• Incident Reporting; dan
• Management Risk Awareness.

We also use whistleblowing as a way to review the effectiveness of implementing a risk-focused organisational culture. Through the whistleblowing mechanism, we encourage each party to contribute in building a risk-based culture by
conveying and voicing irregularities in a safe way without fear of pressure or retaliation. All reported cases are followed up accordingly. Internal Audit is responsible for tracking the status of all whistleblowing cases and reports to the Audit Committee every quarter.

Review of Policy and Performance Effectiveness

Managing this topic is essential to us and throughout the year 2023, fostering a risk- focused culture has resulted in positive impact for our operations. We recorded no incidents related to violations of the Code of Conduct or those related to other risks. In 2023, there were no material fines due to acts of fraud, insider trading, anti- trust, anti-competitive behavior, market manipulation, malpractice or other related financial industry laws or regulation.

As of December 31 2023, 100 per cent of new hires in 2023 have completed the risk culture module or are still within the specified time limit. Meanwhile, employees who joined before 2023 were required to attend a refresher training once a year.

More information regarding risk management policies can be found in the Risk Management section of the Annual Report.