KENANGA INVESTMENT BANK BERHAD 32 INTEGRATED ANNUAL REPORT 2025 KEY RISKS, MITIGATION AND OPPORTUNITIES Technology risk refers to any risks emanating from information technology and cyber threats. Technology and cyber risks are critical threats to the financial industry, with evolving cyber-attacks and system vulnerabilities posing significant challenges. Mitigation Measures • Well-established strategic technology and cyber risk oversight model. The Group has crafted a cutting-edge, industry-leading framework designed to proactively manage technology and cyber risks. This holistic approach empowers anticipation, detection and swift response to emerging threats, while ensuring rapid recovery and continuous operational resilience. • In respect of regulatory excellence, the Group is committed to upholding the highest regulatory standards, including compliance with Bank Negara Malaysia’s policy documents such as Risk Management in Technology and Securities Commission Malaysia’s Guidelines on Technology Risk Management as well as other relevant regulatory requirements. • Embrace in empowering our people. We prioritise building a cyber-aware workforce by conducting ongoing training and awareness programs. • Enhanced cyber security measures. The Group leverages state-of-the-art technology to safeguard against evolving cyber threats. Opportunities • Strengthening Client Relationships Through Trust and Security: With a robust strategic technology and cyber risk oversight model, the Group can differentiate itself as a trusted partner in the financial services industry. By prioritising cyber security and ensuring business continuity, the Group can build stronger, more loyal relationships with clients, fostering trust and confidence in its digital and financial services. • Enhanced Customer Confidence: A strong cyber security posture can be a competitive advantage, attracting customers who value security and reliability. • Partnerships with Fintech: Collaborations with fintech companies can enhance the Group’s technological capabilities and accelerate digital transformation. • Market Leadership: Proactive investments in technology risk management can position the Group as a leader in secure financial services, setting industry benchmarks. Our Approach The Group recognises the importance of safeguarding sensitive client information and maintaining operational integrity. Our advanced cyber security measures and proactive risk management ensure resilience against these threats, protecting both our reputation and our clients. In a rapidly changing digital landscape, the Group is committed to staying ahead of these risks, ensuring secure, uninterrupted service and driving forward our digital transformation journey. Impact to Kenanga Technology and cyber risks can significantly impact the bank by damaging its reputation and disrupting operations, leading to regulatory penalties, financial losses, and increased costs. Cyber-attacks or breaches can erode customer trust, resulting in lost clients and decreased market value, while operational disruptions and system failures can cause downtime and missed opportunities. Non-compliance with cyber security regulations could result in fines, and vulnerabilities may hinder the bank’s ability to stay competitive in digital services. R5 Technology Risk
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