52 Management Discussion And Analysis / Business Review DAGANG NeXCHANGE BERHAD Integrated Report 2024 BUSINESS REVIEW Cybersecurity and Data Protection Risk Description As we deliver critical infrastructure for trade, finance and government services, the risk of cyberattacks or data breaches remains a top concern. Mitigation We are strengthening our cybersecurity frameworks by enhancing system defences and increasing investment in security audits and ISO 27001 certifications. These efforts, combined with regular security audits and continuous monitoring, help the IT Business Segment ensure secure, compliant infrastructure delivery while maintaining robust defences against cyberattacks and data breaches. Technological Obsolescence and Innovation Pace Risk Description In a field defined by rapid technological change, falling behind in capabilities can result in lost relevance or customer confidence. Mitigation We are upgrading our platforms and integrating emerging technologies such as AI, blockchain, IoT and robotic process automation to stay ahead of industry trends. In parallel, we are accelerating internal R&D and automating internal operations through workflow automation and multi-department systems to enhance efficiency and reduce manual processes. Moreover, strategic partnerships enable us to deliver next-generation services while optimising internal resources. Dependence on Government Contracts Risk Description A significant portion of the business segment’s revenue is still tied to government-related projects. Shifts in public-sector budget priorities or contract timelines can introduce volatility. Mitigation We are diversifying our portfolio by expanding into private-sector business-to-business services, strengthening our position in trade digitalisation and exploring regional opportunities across ASEAN. In line with this, we are transitioning from a government-centric model to a balanced business-to-business and government-to-government strategy, where we engage both government-to-government and business-to-business partnerships. Additionally, the IT Business Segment is introducing a hybrid business model that integrates both approaches, allowing us to tap into new revenue streams while continuing to serve high-value public sector clients. Talent Retention and Capacity Risk Description As we scale cloud and AI capabilities, attracting and retaining skilled professionals remains critical. Mitigation We are investing in upskilling programmes in key areas such as data science, cybersecurity and cloud architecture, ensuring our workforce remains competitive. At the same time, we aim to create a collaborative, purpose-driven workplace that supports innovation, encourages knowledge sharing and supports employee retention by offering a dynamic environment that aligns with our long-term strategic goals. Risks and Mitigation The IT Business Segment operates in an increasingly competitive and fast-changing environment, where issues such as cybersecurity, talent and evolving regulations present ongoing challenges.
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