2019 UEM Edgenta Annual Report

51 UEM Edgenta Berhad UEM EDGENTA AT A GLANCE MESSAGE FROM OUR LEADERSHIP STRATEGIC FOCUS OPERATIONAL REVIEW SUSTAINABILITY EFFORTS CORPORATE GOVERNANCE INTRODUCTION FINANCIAL REVIEW ADDITIONAL INFORMATION Annual Report 2019 Key Risks and Opportunities Risk management is an integral part of all our activities. Risks are considered in conjunction with opportunities in all business decisions. We focus on the principle risks which could affect our business performance and therefore the achievement of our strategic objectives. We identify and manage the inherent, as well as external risks to our business through our robust risk management framework. We believe in going beyond compliance to adopt policies, principles and practices which will help minimise our risk exposure and maximise our performance. We see risks as opportunities to strengthen our internal controls, compliance procedures and management strategies. With a robust enterprise risk management platform, we identify principal risks, classify them based on their likelihood and impact, and prioritise in keeping with the dynamic operating environment. We continuously monitor different types of risks associated with our business which can be discussed under six key categories. The balance of effective risk management and taking advantage of all potential opportunities enables us to deliver our strategy. It is imperative that the integrity of our brand, which underpins the successful delivery of our strategy, is preserved through effective risk management. The principal risks that follow, whilst not exhaustive or in any order of priority, are those which we believe could have the greatest impact on our business. The Board regularly reviews these risks in the knowledge that currently unknown, non-existent or immaterial risks could turn out to be significant in the future, and confirms that a robust assessment has been performed. We took cognisance of the risks, and adopted our four strategies to drive the strategic focus in mitigating the key risks. Subsequently, we deepened our mitigation efforts through our 6 strategic focus areas. FOUR STRATEGIES SIX STRATEGIC FOCUS AREAS Disrupting our delivery model Deepen our competencies Broaden income streams Develop total solutions capabilities Operational Excellence Organisational Excellence Health, Safety, Security and Environment (“HSSE”) Client Solutions Technology & Innovation Stakeholder Management & Communications More on our Risk Management Frameworks and processes can be found on pages 119 - 129.