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SECTION 9

Risk & Compliance Framework

ERM, Risk Register, Escalation & Crisis Management

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Charge Holdings Ltd operates in a complex environment involving engineering programmes, vehicle homologation, multi-country operations, supply chain dependencies, brand-sensitive markets, and high-value customers.

9.1 Purpose

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The objectives of the Group's risk and compliance framework are to:

• Identify risks early, consistently, and accurately
• Prevent operational disruption, safety failures, and regulatory breaches
• Support strategic decision-making with risk-informed insights
• Provide transparency to the Board and investors
• Ensure compliance with relevant automotive, legal, financial, tax, and HR regulations
• Maintain trust with partners, regulators, suppliers, and customers
• Protect long-term brand value and enterprise value </aside>

9.2 Enterprise Risk Management (ERM) Principles

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Ownership & Accountability

Risk owners responsible for their area

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Consistent Evaluation

Standard Group-wide methodology

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Escalation

Immediate escalation when thresholds exceeded

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Documentation

All material risks logged in Group Risk Register

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Review & Challenge

Committees and Board challenge assumptions

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9.3 The Group Risk Register

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Central Risk Register controlled by HoldCo and updated:

• Monthly by Executives
• Quarterly by the Audit & Risk Committee
• Annually for the Board strategy review

Risks rated: Red / Amber / Green (RAG)

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Risk Register Fields

Risk category, Risk description, Likelihood, Impact (financial, safety, compliance, brand), Risk owner, Mitigation actions, Status and timeline, Escalation level (Exec / Committee / Board)

9.4 Automotive-Specific Risk Categories

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Engineering Risks

Validation failures, Battery issues, Software integration, Design faults

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Supplier Risks

Insolvency, Quality failures, Delivery delays, Capacity constraints

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Homologation Risks

Non-compliance, Testing failures, Documentation errors

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Production Risks

Readiness delays, Tooling issues, Quality defects, Skills shortages

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Safety Risks

Faulty components, Electrical safety, Recall triggers

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Financial Risks

Cashflow, Fundraising delays, FX, Cost overruns

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9.5 Escalation Framework