48 2021 ESG REPORT THE BIG PICTURE EMPOWERING WOMEN ENABLING OPPORTUNITY ENRICHING COMMUNITIES GOVERNANCE MANAGEMENT APPROACH Risk Management To create long-term value for all our Each year, management and Internal Audit work together ENTERPRISE stakeholders and enable our business and to identify and assess the greatest existing and emerging RISK MANAGEMENT society to thrive for generations to come, risks that could impact the company’s operations or ability PROCESS we apply the following approach to all to achieve its objectives. our environmental and social activities: The Risk Committee, made up of leaders that represent the Internal Audit team Senior Leadership team, provides oversight of the annual conducts ERA Enterprise Risk Assessment (ERA) process: Integrate into our To ensure sustainability is a business • Senior executives and VPs provide input on risks and business imperative at Gap Inc., we have mitigations via an online questionnaire or an interview. Risk Committee embedded it into our business analyzes ERA strategy. Our ESG team works across • The Risk Committee reviews results, identifies any our brands and operations. other key risks, and prioritizes them in the appropriate quadrants based on risk exposure and mitigation Set ambitious We have set annual KPIs and long- maturity. CEO, Board of Directors and goals term goals for the company to drive Senior Leadership team our work forward, measure our • The CEO, Board of Directors, and Senior Leadership review results to monitor and progress, and ensure accountability. team use the ERA to monitor and mitigate risks, as well mitigate risks as to update policies and include in Business Continuity Measure progress We strive to always move forward Planning where required. toward our in creating long-term, sustainable ERA informs annual Internal commitments progress and delivering real benefits We also develop country-specific strategies that take into Audit Plan and ongoing to the people and communities we consideration local context, and we are setting up a new Risk Board oversight rely on for our business, which also Intelligence Office to focus on supply chain-related risks. helps our company succeed. Our approach to data and measurement Learn more on our website. ensures we capture this progress and are able to report to our stakeholders transparently in alignment with reporting frameworks such as GRI and SASB. Form partnerships By partnering with organizations with civil society, from the local to the global level, we governments, and fuel sustainable solutions, create other sectors to greater equality, and scale impact increase collective throughout our business, across our impact industry, and beyond.