Integrated Annual Report 2023 2 3 4 5 6 7 8 9 1 67 CYBERSECURITY RISK Context • At UEM Edgenta, we recognise technology as a force that empowers our organisation. It serves as a major catalyst for transforming our operations, enabling us to refine existing technological solutions, innovate digital healthcare offerings, streamline resource allocation, cut costs, boost productivity and enhance overall customer satisfaction and operational efficiency. • With the expanding interconnectivity of our systems, we are increasingly susceptible to various cybersecurity risks. These include potential cyber threats, malicious attacks on our corporate cloud networks, information security threats, compromised data integrity and privacy and the potential for prolonged disruptions to UEM Edgenta’s IT infrastructure. Mitigation • Our consistent vigilance and enhancement of IT security protocols are ensured through the implementation of cyber security solutions, which encompass network, application, information, end-user and data security. This involves bolstering cloud security, continuously monitoring critical data and implementing security controls such as firewall protection, endpoint detection and response systems, vulnerability assessments and penetration tests. • Additionally, regular awareness initiatives are conducted to educate all employees about cyber threats, emphasising the significance of cybersecurity and keeping them updated on the latest developments in this field. Cybersecurity risks represent the looming danger of the confidentiality, integrity or availability of UEM Edgenta’s information, data or control systems being compromised, thereby potentially tarnishing the Company’s operational efficiency, reputation and overall standing. These risks are intricately intertwined with the Group’s expansion initiatives and its increasingly presence in the realm of IT and digitalisation. With a mounting reliance on the internet and a surge in remote or offsite network access, vulnerabilities to cyber threats increase significantly. The occurrence of any significant infrastructure failure, cyberattack or breach could severely disrupt UEM Edgenta’s operational continuity, underscoring the urgent need for robust cybersecurity measures to safeguard its assets and interests. RISKS AND MITIGATION ESG RISK Context The growing importance of ESG programmes and disclosure is evident as stakeholders increasingly demand transparency regarding environmental stewardship, fair labour practices, occupational health and safety, diversity, responsible sourcing of materials, protection of communities a business serves and corporate governance. In response, our group has heightened its focus on ESG matters, reaffirming our commitment to these values and actively promoting them as integral to our identity as a responsible corporate citizen. Mitigation • The Group has established a robust sustainability framework across the Economic, Environmental, Social, and Governance pillars. This framework underpins a 2-year Sustainability Roadmap developed in 2022, guiding material matters relevant to our business. It also led to an effective Sustainability Governance structure involving the Board of Directors through our senior leadership team. A Sustainability Policy reinforces these efforts, integrating ESG principles and sustainability ethos within UEM Edgenta’s operations and services. • We are steadfast in maintaining compliance with prevailing ESG requirements, vigilantly monitoring changes in these standards and policies to ensure ongoing adherence. • Regular assessments are conducted to evaluate our ESG compliance, with a commitment to updating our policies and procedures to ensure their adequacy, effectiveness and alignment with evolving standards. • Engagement with stakeholders across our value chain is the foundation of our approach, enabling us to discern material matters, risks and threats. Through this dialogue, we devise and implement initiatives to mitigate these concerns effectively. • Fostering conscientious and responsible ESG behaviour among employees, clients and vendors is a continuous effort, achieved through consistent communication and awareness-building at all organisational levels. Investors in today’s investment landscape are increasingly prioritising Environmental, Social and Governance (“ESG”) factors when evaluating companies’ sustainability and risk profiles. The integration of ESG considerations can significantly impact a company’s financial performance and shareholder value. Studies have revealed a positive correlation between strong corporate ESG, practices and financial success. ESG risks encompass the diverse uncertainties and potential threats that challenge the ongoing enhancement of our business strategies and operational effectiveness. These risks are critical factors in sustaining our growth trajectory and ensuring the long-term availability of resources within our value chain, all within the context of ESG considerations. Any form of non-compliance at UEM Edgenta may precipitate various adverse consequences. These encompass potential revenue and market share losses due to evolving customer preferences, an erosion of trust from investors and rating agencies, financial penalties imposed by regulatory bodies and a negative impact on our brand perception and public image.
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