Managing Risk Effectively For IGO, effective management of risk is imperative in order to live our purpose and deliver on our strategy. We believe good risk management allows us to safeguard our people, assets, reputation and the environment and serves the long-term interests of all our stakeholders. IGO’s approach to risk management is governed by our risk management framework which is aligned to the principles of the International Standard for Risk Management (31000:2018). During FY22, IGO commenced a review of its risk management framework to ensure best practice, and will finalise and roll out the updated risk management framework during FY23. Risk management at IGO is overseen by the Board through the Audit & Risk Committee (ARC). The ARC operates in accordance with an approved ARC Charter and assists the Board in overseeing and monitoring the risk management framework. Our risk management framework is designed to provide the ARC and the Board with sufficient oversight to satisfy itself that management does not exceed the Board’s agreed risk appetite, that is, the profile and tolerance of the risks we are willing to take to deliver our strategy. IGO’s General Counsel and Head of Risk & Compliance is directly accountable for managing risk within the Company and regularly meets with the ELT to consider and address material risks. Our risk management framework is based on the three lines of defence model, with key elements working together across the business to ensure strong risk management through identification of risks, defined systems and controls and assurance. We regularly review, assess and manage our risks at both a strategic enterprise level, and an operational and project level. Risks that are defined as material to the Company are reported to and discussed with the ARC and the Board, and formal risk updates are carried out through regular management reviews and facilitated workshops. Strategic Risks Risk that may threaten the ability for us to achieve our strategic plan or threaten the future performance of the Company, are identified as strategic risks. These risks are created by both internal and external factors that could have the potential to significantly impact the Company. Our strategic risks include catastrophic risks that, while low probability, have the highest level of consequence for the organisation. Our current identified ten strategic risks, which are continuously being reviewed, are: Risk Impact Mitigation COVID-19 Large scale outbreak of COVID-19 variant. A large-scale outbreak may lead to interruptions in our operations (including temporary suspension of mining operations). The physical and mental health and wellbeing of our people may be affected and restrictions on travel could impact our ability to manage our business effectively. Economic shocks and disruption may affect commodity markets. As a Company, we have changed the way we work to protect the wellbeing of our people, safeguard the communities in which we operate and ensure business continuity. We continue to maintain a heightened state of response readiness commensurate with the risk and in accordance with government recommendations and health advice. Our COVID-19 response team remains active and continues to assess this risk. Ensuring the Safety and Wellbeing of Our People Not having a safe work environment. Not having a safe work environment can be devastating for colleagues, contractors, family members and communities. It can negatively affect our culture, operational performance, stakeholder confidence and our social licence to operate. The safety and wellbeing of our people is our highest priority. As a Company we care about our people and keeping each other safe and healthy. We have a comprehensive system of risk management, internal safety and wellbeing policies, standards and systems which are designed to prevent and mitigate potential exposure to health and safety risks. We continue to implement programs of work to strengthen our systems and eliminate hazards from our business. IGO ANNUAL REPORT 2022— 51
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