Statement on Risk Management and Internal Control A summary of key risks identified by Management and reported to the ARC and the Board during the financial year are captured below. Monitoring of mitigation activities is on-going and continuous to ensure risk exposures are within acceptable level. Please refer to ‘Our Key Risks in Section 3: What is Our Plan for Success?’ for full description of these risks. Market and Competitive Risk Risk on revenue growth due to competitive operating landscape, consumer spending behaviors and prolonged economy recovery from Covid-19 Employees’ Health and Safety Risk Covid-19 related impact on employees’ health and safety, as well as hazard and safety risk at operational sites Governance and Compliance Risk Compliance to applicable industry and integrity standards by Digi and our business partners, and governance framework with internal controls to promote highest level of ethics Talent and Succession Management Risk Sucsession planning and development of right talents and skills for growth and digital transformation Merger Approval Risk Related risks on the proposed merger between Digi and Celcom Axiata Berhad include non-completion if conditions are not fulfilled and potential prolonged approval process by regulator Cyber Security Risk Cyber-attacks and other emerging threats from new technologies may expose Digi to malicious attacks by threat actors Business Continuity Risk Continuity of Digi’s critical service areas and functions during Covid-19 outbreak and natural disasters Network Experience Risk Investment prioritisation in digitisation and network modernsation to improve customers’ network experience Data Protection Risk Data security and governance in current remote working condition to fulfil increased consumer expectations Climate Risk Insufficient climate commitment and action to manage climate transition risks resulting in reputation loss and regulatory non-compliance Regulatory Risk Regulatory requirements that govern the industry, from technical, to commercial and corporate framework that protect consumers and advance Malaysia’s digital ambitions Critical Systems Migration Risk Potential service interruptions and adverse customer experience caused by outages from planned systems migration 121 Integrated Annual Report 2021 Governance Audited Financial Statements Other Information
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