My EG Services Berhad Annual Report 2019

MY E.G. SERVICES BERHAD [Registration No. 200001003034 (505639-K)] 38 Risk Description of Risk Linkage/Impact to Business Strengths/ Strategy Impacted Stakeholders (Aside from MYEG) Mitigation Action Plans Economic The economy is beyond MYEG’s control, but as MYEG expands beyond Malaysia, macro-economic factors such as currency issues, etc. could have an impact on overall Group performance Growing regional footprint Market leader Government and regulators Employees Community and general public Investors Kindly refer to our Sustainability Statement on page 41 Political and regulatory environment Political factors are beyond the Group’s control. However, the value of what we provide transcends the politics of the day and is meant to serve the citizens. Growing regional footprint Strong technological and innovation capabilities Customers Investors Employees Business strategy The Group has set various targets for business performance and we remain confident of realising them. In the event that targets are not achieved, there will be clear implications on financial and non-financial results for stakeholders. Broad mix of revenue channels across diverse commercial and e-government services Growing portfolio of services Market leader Investors Employees Laws and legislation Any change of legislation by governments may lead to MYEG not complying with local laws or having to remodel its services. Growing regional footprint Investors Community and general public Employees Litigation Any legal suit against the Company would have a branding and possibly financial impact as well. Growing regional footprint Investors Employees Community and general public Going further in FP2019, we have mapped our risk factors to business strategy and affected stakeholders. For detailed mitigation plans, please refer to our Sustainability Statement within this Annual Report. Our risk management framework and policy is ISO 31000 compliance. The Board oversees risk related matters, which include financial and operational risks as well as ESG related risks. Integrated Thinking across Our Strategic Approach In selecting our broad based business strategies, we believe that beyond meeting set objectives and how we wish to go to market, our strategies must take into account a wide range of variable factors. These factors include market opportunities, industry competition, inherent business, operational and financial risks as well as how our choice of strategies will enable MYEG to best leverage on its inherent business strengths. Essentially, our strategies are devised and executed with due consideration based on the interrelated linkage and unique relationships between the aforementioned variable factors. The strengths, opportunities, risks and threats (“ SORT ”) diagramme below provides a summarised perspective of how business strategies interplay with factors, both positive and negative, internal and external. OUR VALUE CREATION PROCESS AND BUSINESS MODEL (CONT’D)