UEM EDGENTA BERHAD Integrated Annual Report 2025 68 Description Compliance risk refers to the potential for legal or regulatory breaches arising from failure to adhere to applicable laws, regulations, standards, or internal policies. Non-compliance may significantly impact our operations, resulting in legal sanctions, financial penalties, operational disruption, and reputational damage. It may also undermine our credibility, stakeholder confidence, and long-term sustainability. COMPLIANCE RISK R4 Context Mitigation • A significant portion of our business, particularly in Healthcare Support and Infrastructure Services, operates under concession arrangements which are subjected to stringent regulatory oversight and complex legal and contractual requirements. • Potential exposure to non-compliance and litigation arising from the geographical diversity of our operations and customer base. • Commitment to good corporate governance and compliance with regulatory and listing requirements to uphold integrity throughout our business operations. • Non-compliance and regulatory uncertainty may result in financial, operational, and reputational impacts, including the potential suspension or loss of key licences or rights and disruption to business continuity and investment plans. • Establishing service-level agreements and contractual frameworks to effectively govern our relationships with customers, contractors, and vendors, ensuring clear responsibilities, accountability and performance expectations. • Conducting regular assessments to ensure continuous compliance, with policies and procedures being consistently updated to maintain their adequacy, effectiveness, and relevance. • Instilling a culture of integrity and compliance throughout the organisation, reinforced by strong internal controls and consistent enforcement of operational processes across operations. • Maintaining close collaboration with regulatory bodies to stay abreast of latest legal and regulatory requirements, as well as evolving industry standards and best practices. • Establishing secure whistleblowing channels that enable employees, stakeholders, and the public to report any actual or suspected malpractice, misconduct, or violations of the Group’s policies and procedures safely and confidentially. Description Securing, developing, and retaining critical talent with the right capabilities is essential to achieving strategic objectives and ensuring leadership continuity and long-term sustainability. Challenges in talent attraction, retention, succession planning, and compliance with evolving regulatory requirements may adversely impact the Group’s operational performance and strategic execution if not effectively managed. R5 PEOPLE RISK Context Mitigation • Our Edgenta Stars, namely our people are one of the Group’s most valuable assets and a fundamental pillar of our success. • A capable, engaged, and resilient workforce underpins the effective execution of our strategies, while supporting strong leadership continuity and enabling the delivery of consistent, high-quality services and outcomes to our customers and stakeholders. • Focusing on driving growth, strengthening capabilities, and enhancing the overall workforce experience to attract, develop, and retain critical talent in alignment with the Group’s HR strategic priorities. • Introducing programmes through Edgenta Academy to strengthen leadership, managerial, and technical skills, equipping our employees with the knowledge and expertise needed to drive sustained organisational success. • Ensuring that our employment terms and benefits provide our Edgenta Stars with a rewarding, supportive and well-balanced experience. • Conducting periodic talent reviews to support leadership transitions for critical roles, considering successor availability, readiness, and necessary development interventions. • Enhancing our development ecosystem to ensure that successors are systematically prepared and monitored, thereby maintaining a strong leadership pipeline and sustained organisational continuity. • Closely monitoring minimum wage regulations, their implementation, and associated costs, while reviewing internal policies and practices to ensure full compliance with all applicable laws and regulations. KEY RISKS AND MITIGATION
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