Our operations are now more diverse than ever – both in terms of geography and nature of business – and this has only heightened the need for thorough, effective risk management processes. In response, we maintain and continually enhance our robust risk governance framework, aiming to cover all existing and potential risks across a range of risk categories, including operations, technology development, the global financial system, market trends, ESG and more. Just as importantly, responsibility for risk identification, assessment and mitigation is vested within teams at each level of the organisation, furthering a culture of shared responsibility and collective action on these business-critical issues. Our Enterprise Risk Management Framework (“ERM Framework”) reflects our overarching approach to risk management and is embedded into the day-to-day processes of the Group, ensuring that all business risks are prudently identified, analysed and effectively managed to safeguard returns for our shareholders and value creation for all our stakeholders. The key functions within the framework are carried out as follows: SCOPE, CONTEXT, CRITERIA CONTINUOUS MONITORING & REVIEWING COMMUNICATION & CONSULTATION RISK IDENTIFICATION RISK ANALYSIS RISK EVALUATION RISK TREATMENT A. STRATEGIC REVIEW KEY RISKS AND MITIGATION ENTERPRISE RISK MANAGEMENT FRAMEWORK Based on the findings of risk owners/co-owners, the relevant management committee develops a risk treatment plan to be applied As the treatment plan is implemented, the relevant management committee is charged with ensuring effective communication across the chain of command, and that all actions are recorded and in turn reported to the Board of Directors The actions are then implemented by the risk owner/ co-owners, and monitored by the relevant management committee (with the process overseen by the Grouplevel Audit Committee, the Group-level Risk, Governance and Sustainability Committee, and the Board of Directors of the subsidiary in question) RECORDING & REPORTING RISK ASSESSMENT Risk Trend Increase Decrease Stable Risks are identified and analysed by staff at each of our subsidiaries, who are in turn led by risk owners/ co-owners DAGANG NeXCHANGE BERHAD 56
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