RISK AND OPPORTUNITIES MYEG continues to be vigilant against its identified risks, which include business, financial, strategic and operational risks, as well as ESG risks. It is evident as identified in the earlier section on Matters Impacting Value Creation, that the emergence and prevalence of risks in today’s business environment does not just emanate from a conventional business-oriented risk perspective, but also from ESG aspects such as stakeholder perspectives, climate change and more. In the same vein, the fast-changing and disruptive external operating environment also provides opportunities, notably for MYEG through the proliferation of new technologies. When integrated with ESG considerations, these offer tremendous potential for exciting business opportunities. This convergence supports MYEG’s aspirations for business and market expansion / diversification and also addresses capital dependencies, notably financial capitals. Our risk management framework and policy are guided by ISO31000. The Board oversees risk-related matters which include financial and operational risks as well as ESG related risks. For detailed information on MYEG’s internal risk management mechanism, please refer to our Risk Management and Internal Control Statement within this IAR2022. This section provides specific information on risks. Information on Opportunities is provided in the Strategies to Sustain Value Creation Section. Risk Description of Risk Linkage to Materiality Who Does this Risk Impact? Mitigation Action Plans Technology related risks Risks of technological obsolescence, costs spent to develop technologies that may be rendered irrelevant due to fast emerging developments. Competitive edge and market positioning affected due to changing technologies. Technology is a double-edged sword that could allow us to gain first mover advantages; or be impacted by others. Intellectual property Cyber security Business model Employees Investors Kindly refer to the Strategies to Sustain Value Creation section of this Annual Report. Non-renewal of e-Government services Non-renewal or delays in renewal due to governmental / political factors can impact the business model. Political factors are beyond the Group’s control. However, the value of what MYEG provides transcends the politics of the day and is meant to serve the citizens. Given MYEG’s sound service delivery record and compliance to KPIs for all e-Government services, the risk of non-renewal remains low. Customer experience Strong technological and innovation capabilities Business model Customers Government and regulators Investors Community and general public Kindly refer to our Strategies to Sustain Value Creation section of this Annual Report. 46
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