2020 UEM Edgenta Annual Report

INTRODUCTION Effective risk management is vital as it entails risk mitigation and taking advantage of potential opportunities to deliver our business strategy successfully. Through risk management, we are able to maintain our competitive advantage as we drive sustainable growth and enhance shareholder value. We focus on principal risks which could affect our business performance and therefore the achievement of our strategic objectives. Risks, inherent to our business, as well as external risks are identified and managed through our robust risk management framework. Going beyond compliance, we adopt policies, principles and practices which help to minimise our risk exposure and maximise our performance. We see risks as opportunities to strengthen our internal controls, compliance procedures and management strategies. The risks identified are mapped against the likelihood of occurrence and potential business impact. We continuously monitor different types of risks associated with our business which are discussed below under six key categories. More details on our Risk Management Framework and processes can be found on pages 138 to 147. The principal risks that are described, whilst not exhaustive or in any order of priority, are those which we believe could have the greatest impact on our business. The Board regularly reviews these risks in the knowledge that currently unknown, non- existent or immaterial risks could turn out to be significant in the future. It also confirms that a robust assessment has been performed. The Transformation Pillars we have adopted to drive our Edgenta of the Future strategy acknowledge our key risks while encompassing responses to mitigate them. These Transformation Pillars are supported by 6 Focus Areas, as described below: Extract Value from Our Core Enhance Product and Technology Proposition Expanding Footprint & Deepening Solutions 6 FOCUS AREAS TRANSFORMATION PILLARS Operational Excellence Organisational Excellence Health, Safety, Security and Environment Client Solutions Technology and Innovation Stakeholder Management & Communications Management Discussion & Analysis UEM EDGENTA BERHAD 60 KEY RISKS AND MITIGATION A. STRATEGIC REVIEW