Risks affecting business model viability or long-term positioning Risks arising from systems, processes or day-to-day delivery Risks including cybersecurity, data privacy and obsolescence Risks related to funding, cash flow and market exposure Risks associated with workforce capacity, leadership or culture 01 Strategic 03 Operational 05 Technology 02 Financial 04 People STRATEGIC REVIEW As data centre deployments increasingly extend to tactical edge locations and remote government sites, reliance on manual intervention becomes both cost-intensive and operationally inefficient. In response, DNeX IT is pivoting towards intelligent, autonomous operations through the integration of AI-driven capabilities, including: • AI-driven predictive infrastructure management, enabling early detection of hardware degradation and failure through advanced analytics • AI-powered data loss prevention, with models designed to monitor, detect, and prevent unauthorised data exfiltration • AI-enabled Security Operations Centres (“SOC”), providing realtime threat detection, correlation, and response recommendations • AI-driven applications and workloads, capable of analysing secured datasets to generate actionable insights and recommend next-best actions within controlled environments • Autonomous systems management, including self-healing infrastructure and policy-based orchestration for minimal human dependency This strategic direction positions DNeX IT to deliver resilient, secure and intelligent digital infrastructure solutions purpose-built for hightrust and sovereignty-sensitive sectors ENTERPRISE RISK MANAGEMENT FRAMEWORK DNeX applies a structured approach to risk management through its ERM Framework, aligned with ISO 31000:2018, which sets out a consistent method for identifying, assessing and managing risks in all business segments. Risk considerations form part of operational and decision-making processes. The Board has overall responsibility for risk governance, including setting the Group’s risk appetite and tolerance levels and overseeing the review of principal risks. This oversight is supported by the Board Risk, Governance and Sustainability Committee (“RGSC”), which assists the Board in monitoring risk exposures, governance and sustainability matters, and the effectiveness of mitigation measures. Management implements the ERM, monitors key risks and ensures appropriate controls and mitigation actions are in place. Regular reporting and structured escalation mechanisms provide the Board and its committees with timely visibility over material risk exposures, emerging risks and the effectiveness of mitigation strategies. The ERM Framework is embedded across the Group’s governance and operating structures, supporting a systematic and disciplined approach to risk identification, assessment, treatment, monitoring and reporting. Risk management is integrated into business planning, capital allocation, operational execution and performance management processes. Strategic and operational decisions are informed by risk assessments to ensure alignment with the Group’s risk appetite and long-term objectives. The Group continuously enhances its ERM practices through ongoing improvements to processes, controls and internal coordination, taking into account changes in the operating environment and regulatory expectations. Closer alignment between risk management, compliance and sustainability functions has strengthened the Group’s ability to manage interconnected and enterprise-wide risks in a holistic manner. A risk-aware culture is promoted across the organisation, underpinned by clear accountability, transparency and proactive risk ownership. Employees at all levels are expected to identify, assess and manage risks within their respective areas of responsibility, supported by established policies, procedures and targeted training programmes. Group-Wide Risk Management Approach Essentially, risks are categorised into five main groups: DNeX INTEGRATED REPORT 2025 50 ABOUT THIS REPORT LEADERSHIP VALUE CREATION @DNeX LEADERSHIP INSIGHTS OVERVIEW OF DAGANG NeXCHANGE BERHAD
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