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RISK ASSESSMENT AND PRIORITISATIONValeura evaluates risks based on their potential impact on the Company%u2019s ability to achieve its objectives, and on their likelihood of occurence. Risks are categorised as: high (exceeding risk tolerance and demanding urgent attention), medium (requiring ongoing management and vigilance), and low. RISK TREATMENT AND ENHANCING BUSINESS RESILIENCE FROM OPPORTUNITIESValeura has established systems, processes, and measures to manage risks. For those categorised as %u201chigh%u201d, the Risk Champion must implement appropriate measures to mitigate the risk to an acceptable level. For %u201cmedium%u201d risk, the Risk Owner is also required to reduce the risk through appropriate measures, including regular monitoring. Risks identified as %u201clow%u201d require monitoring to identify early warning indicators. If risks remain after having put such mitigations in place, the particular item remains subject to the ERM process, and is flagged as a residual risk. Risk categories DescriptionStrategicStrategic risks include risks in human capital development to support future business needs, addressing sustainability challenges and global trends for long-term value creation, and meeting stakeholder, community, and regulatory expectations.FinancialFinancial risks comprise those related to financial loss or economic shifts, including fluctuations in oil prices, rising operating costs, and increased cost of capital.OperationalOperational risks for activities like drilling, production and transportation can be from hazards such as equipment failure, logistical challenges, human error or major incidents that have social and environmental impacts. Legal, Compliance & ReputationThis category includes risks from change of law or government policies, and non-compliance with laws, regulation, internal policies, or contracts, which could lead to fines, reputational damage, loss of stakeholder confidence, or impact the Company%u2019s licence to operate.VALEURA ENERGY INC. 101