Risks arising from systems, processes or day-to-day delivery Operational Risks affecting business model viability or long-term positioning Strategic Risks associated with workforce capacity, leadership or culture People Risks related to funding, cash flow and market exposure Financial Risks including cybersecurity, data privacy and obsolescence Technology The Group evaluates risks based on their likelihood and potential impact, enabling us to prioritise response plans and escalation effectively. Internal controls, compliance processes and assurance mechanisms are structured around this risk management framework. Group-Wide Risk Management Approach Essentially, risks are categorised into five main groups: ENTERPRISE RISK MANAGEMENT FRAMEWORK At DNeX, effective risk management is essential to preserving value and building organisational resilience in a fast-changing and often unpredictable environment. The Group’s Enterprise Risk Management (“ERM”) Framework provides a structured, Group-wide approach to identifying, assessing, mitigating and monitoring risks that may impact our ability to achieve strategic and operational objectives. Our ERM framework is guided by the international ISO 31000 Risk Management Principles and is embedded across all levels of the organisation, from strategic planning to project execution. Risk management is treated not as a compliance exercise, but as a core element of decision-making, resource allocation and performance tracking. Risk Governance and Oversight DNeX’s risk governance structure is anchored by the Board of Directors, with oversight delegated to the Risk, Governance and Sustainability Committee (“RGSC”). The RGSC is responsible for reviewing the Group’s risk exposure, key developments and adequacy of controls. The Group’s Risk Register is updated on a quarterly basis, incorporating input from all business units and capturing both existing and emerging risks. The ERM framework is designed to be dynamic. It is reviewed periodically - or when triggered by major changes in our operating environment, regulatory landscape or business model - to ensure its relevance and effectiveness. Risk owners are assigned at operational and project levels, with accountability clearly established for both risk mitigation actions and reporting outcomes. 32 Management Discussion And Analysis / Strategic Review DAGANG NeXCHANGE BERHAD Integrated Report 2024 STRATEGIC REVIEW
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