Entergy’s Risk Management Strategy
Entergy has a formal process for identifying, assessing, mitigating, reporting, andmonitoring its top enterprise risks. These risks are multidimensional, complex,interrelated, and affect multiple key stakeholders.

Our Current Enterprise Risks
Our Customers: We seek to meet or exceed the expectations of our customers bymanaging the risks to Customer Experience regarding 1) their interactions with us, 2)
our offerings to them including meeting their ESG aspirations, 3) the cost of theirservice, and 4) the foundational level of Service Reliability they expect.
Our Employees: Consistent with our safety objective to live safe all day, every day,Employee and Contractor Safety is one of our top enterprise risks. We continue to focus
on Talent Management by attracting, developing, and retaining a diverse workforce
with the knowledge, skills, and capabilities required for our operations.
Our Operations: Protecting our assets and systems from Cyber and Physical Security
risks is essential to our operation. Our nuclear plants provide low cost and carbon freepower to our customers, and we focus on mitigating risks to their operation, particularly
those that may lead to an Extended Shutdown. We prepare for and respond to Weather
Related Incidents that may disrupt our ability to sustain our operations and provide
essential services to our customers, and we require a robust and sustainable Supply
Chain to meet our business objectives. We carefully manage our relationships with key
Third Parties to support our procurement activities and limit our risks.
Our Owners: We require solid Liquidity to fund our operations, particularly during
stressful events like a large-scale tropical storm that may simultaneously drive increased
spend and reduced revenue. We must manage our Capital and O&M spend to meet ourcommitments to our owners and customers, and we rely on investment grade CreditRatings to attract capital at a reasonable cost.
Other Stakeholders: We engage with our Regulatory bodies to timely recover ourprudently incurred costs and to realize the expected returns on our investments. We
continue to focus on ESG issues by measuring and tracking ESG Performance.

1|P ag eExecution risk
To manage the challenges to executing major initiatives and large projects intended tofurther our strategy, Entergy has a Major Initiative Execution Risk process that tracks therisks to achieving the objectives of those initiatives, including delivering on scope,schedule, and cost commitments.

Our ERM Process
Risk Identification
The ERM function continually engages with leaders across the company to identify
enterprise risks.
Risk Assessment Criteria
We assess the Inherent level of each risk prior to adjusting for management actions inplace to alter its severity, and we also assess the effectiveness of our existing
management actions based on defined Key Performance Indicators. The assessment ofInherent risk combines Likelihood, Impact, and Velocity to derive an Inherent risk score.
We prioritize our risks based on Residual risk score, the difference between the Inherent
risk score and the amount of risk controlled derived from the assessment of risk
management effectiveness. The risk assessment process also involves rating theinterdependencies among the risks. This reveals the risks that are highly active (affecting
many other risks) which is also useful for optimizing risk response.
Risk Ownership
Each Enterprise risk is formally owned by a member of the OCE and managed by a RiskManager. Entergy has an ERM Subcommittee comprised of Risk Managers and othersubject matter experts. The committee is a venue for sharing risk information, validatingrisk assessments, and collaborating on risk treatment.
Integration with Audit Plan
Entergy’s Audit team is currently using enterprise risk to influence the audit plan, and to
gain insight into what areas to consider. The integration of ERM has allowed Audit tobetter prioritize their work. Audit findings are also mapped to and reported by enterpriserisk factors. ERM participates in stakeholder engagement meetings with executive leaders
on at least an annual basis to get their feedback on the enterprise risks and theirassessments.
2|P ag eIntegration of risk information and decision making
We identify risk interdependencies to facilitate optimization of risk responses and link thecapital plan to individual risk factors. Including ERM factors when making these capitalchoices allows for a more informed decision making.
Risk Reporting
The ERM function formally reports Enterprise Risks to the Office of the Chief Executiveand to the Audit committee of the Board in January, May, July, and October of each year.
Each update summarizes the risk landscape and reports the overall risk score trend,changes in the risk assessments and risk themes.
Maturity Assessment
Entergy tracks ERM progress through periodic assessments of maturity. Theseassessments provide a gauge of the evolution of Entergy’s risk management practices andsuggests areas for enhancement.

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