KEY RISK THEMES IN FY2024 In FY2024, several macro-level and cross-business segment risks were elevated. While individual business units responded to these risks at an operational level, the Group also implemented oversight and structural measures to address them holistically. For detailed risks and mitigation actions specific to each business segment, please refer to the Business Segment Financial Performance and Review section of this report. A Dynamic and Integrated Risk Culture Risk management at DNeX is not confined to annual reviews or checklists; it is a continuous, forward-looking process. Our risk culture encourages openness, accountability and cross-functional coordination. The ERM framework is closely linked to our strategy execution process, ensuring that risk insights are actively applied to investment decisions, operational planning and transformation initiatives. By embedding risk awareness at all levels of the organisation, we aim to build a business that is not only prepared for disruption but capable of turning risk into opportunity. 33 Management Discussion And Analysis / Strategic Review DAGANG NeXCHANGE BERHAD Integrated Report 2024 STRATEGIC REVIEW Global Geopolitical Stability Ongoing global tensions, including the United States-China technology rivalry, the Russia-Ukraine conflict and conflict in the Middle East, continued to pose risks to supply chain continuity, policy stability and investment planning. In response, the Group enhanced its monitoring of geopolitical risk exposure and advanced its strategy of regional diversification and localisation to mitigate overdependence on specific markets. Availability of Financial Resources The dual impact of commodity price volatility and semiconductor market softening highlighted the importance of agile financial planning. The Group responded by tightening capital allocation, prioritising high-return investments and exploring funding alternatives through strategic partnerships and refinancing efforts. Cybersecurity and Data Privacy As digitalisation deepened across the Group, the risk of cyber threats remained elevated. During the year, we strengthened our security posture through ISO 27001 compliance, internal awareness training and investment in detection and prevention capabilities. Cybersecurity remains a core component of our risk register and is reviewed regularly at the Board level. Human Capital Management and Talent Retention Access to skilled talent, particularly in specialised areas such as advanced manufacturing, digital systems and cybersecurity, continued to pose a constraint on delivery capacity. The Group maintained its focus on talent development pipelines and retention efforts, supported by upskilling programmes and targeted hiring initiatives. Environmental, Social and Governance Global ESG standards and disclosure requirements continued to evolve, with growing regulatory emphasis on climate risk reporting and stakeholder engagement. In FY2024, the Group monitored upcoming frameworks such as IFRS S1 and S2 and aligned internal governance to prepare for broader ESG compliance and transparency.
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