COMPLIANCE RISK 04 Description Compliance risks involve the potential for legal violations or failure to adhere to regulatory requirements. Non-compliance can severely impact the Group’s operations, resulting in legal penalties, financial consequences, and reputational damage. It also threatens the Group’s standing and integrity within the industry and among stakeholders. • A significant portion of our business, particularly in Healthcare Solutions and Infrastructure Services, comprised of concessions that are subject to rigorous regulatory oversight and a complex framework of rules and regulations. • Potential exposure to non-compliance and litigation given the geographical diversity of our business and customer base. • Adherence to good corporate governance practices, regulatory standards, and listing requirements, ensuring integrity is upheld throughout our business operations and activities. • Any adversity could lead to the suspension of essential authorisations, licenses, or rights. A lack of regulatory certainty poses risks to our operations, reputation, and investment decisions. Context • The Group has established service-level agreements and contracts to effectively govern its relationships and agreements with customers, contractors, and vendors. • Regular assessments are conducted to ensure continuous compliance, with policies and procedures being consistently updated to maintain their adequacy, effectiveness, and relevance. • Instil a culture of integrity and compliance throughout the organisation, supported by the enforcement of robust internal processes across operations. • Maintain close collaboration with regulatory bodies to stay abreast of latest legal and regulatory requirements, as well as evolving industry standards and practices. • Established appropriate whistleblowing channels to provide employees, stakeholders, and the public with a secure avenue to report any actual or suspected malpractice, misconduct, or violations of the Group’s policies and procedures. Mitigation PEOPLE RISK 05 Description Securing and nurturing an engaged, talented team with the necessary knowledge, training, skills, and experience is essential to achieving our strategic objectives. Challenges in attracting, integrating, and retaining the right talent may affect UEM Edgenta’s long-term growth and performance. • People are one of the Group’s greatest assets and key pillars of success. They are fundamental to executing our strategies and delivering the services and outcomes expected by our customers and stakeholders. Context • Established an Employee Value Proposition that offers an exceptional experience in exchange for high productivity and performance. Our strategy focuses not only on attracting the right talent but also on retaining top performers by consistently benchmarking against industry best practices. • A robust succession planning framework is in place to identify and develop key talents for mission-critical positions, ensuring the continuity of leadership and operational success. • Edgenta Academy remains committed to offering ongoing training and development programmes designed to upskill and reskill our workforce, empowering them with new skills, knowledge, and expertise to drive the Group’s success. Mitigation 69 MANAGEMENT DISCUSSION AND ANALYSIS
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