Company: ARBB
Filing Date: 2025-10-31
Form Type: 20-F
Source: 0001213900-25-104705
Chunk: 143

Company: ARB IOT Group Ltd
Filing Date: 2025-10-31
Form: 20-F
Item: Item 19
Chunk 143
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 the Chairman of the Board and
Chief Executive Officer of the Group.

F-36

22. RISK MANAGEMENT OVERVIEW

The overall financial risk management objective of the Group is to
optimize its shareholders value and not to engage in speculative transactions.

The Group is exposed mainly to market risk (which
comprises interest rate risk), credit risk and liquidity and cash flow risk arising from their business activities.

  (a)      Market risk: Interest rate risk  

Interest rate risk is the risk that the fair value
or future cash flows of the financial instruments of the Group and of the Company will fluctuate because of changes in market interest
rates. The exposure to market risk of the Group for changes in interest rates relates primarily to the deposits placed with licensed banks
of the Group.

Sensitivity analysis for interest rate risk

The Group is not exposed to interest rate risk
as the interest-bearing financial instruments carry fixed interest rates. As such, sensitivity analysis is not disclosed.

  (b)      Credit risk  

Exposure to credit risk arises mainly from sales
made on credit terms. The Group controls the credit risk on sales by ensuring that its customers have sound financial position and credit
history. The Group also seeks to invest cash assets safely and profitably with approved financial institutions in line with the policy
of the Group.

Exposure to credit risk

At the end of each reporting period, the maximum
exposure to credit risk of the Group and of the Company is represented by the carrying amount of each class of financial assets recognized
in the consolidated statements of financial position. Information regarding credit enhancement for trade receivables, net and cash and
bank balances are disclosed in Notes 7 and 9 respectively.

  (c)      Liquidity and cash flow risk  

Liquidity and cash flow risks are the risks that
the Group and the Company will not be able to meet their financial obligation when they are fall due. The exposure of the Group and of
the Company to liquidity risk are principally from their payable and lease liabilities.

The Group actively manages its debt maturity profile,
operating cash flows and the availability of funding so as to ensure that all operating, investing and financing needs are met. In executing
its liquidity risk management strategy, the Group measures and forecasts its cash commitments and maintains a level of cash and cash equivalents
deemed adequate to finance the activities of the Group.

The analysis of consolidated financial instruments
by remaining contractual maturities has been disclosed in Notes 5, 10 and 11 to the consolidated