Our Key Risks Overview of our risk management process Digi’s risk management framework and processes are aligned with ISO 31000 International Risk Management Standards.We adopt an integrated approach from identification, assessment, and holistic management of risks. Key risks identified are prioritised and managed within acceptable risk level.Top risk pictures and mitigation responses are reported to the Board and Audit and Risk Committee (ARC) quarterly to allow for highest level of accountability. By adapting to market demands and keeping up with the accelerated pace of technological innovation, Digi continues to strengthen our ability to address emerging risks and to realise new opportunities. Our risk management framework allows us to identify, measure, monitor, and mitigate key risks to ensure Digi operates efficiently and continues to create value for our stakeholders. Market and Competition Risk The impact of various phases of lockdown, prolonged economic recovery, and travel restrictions on consumer spending behaviours and consumption patterns. Key Risks & Descriptions 2021 Performance & Challenges Mitigation Actions The outbreak of Covid-19 pandemic led to a surge in data consumption due to nationwide lockdowns and the norm of social distancing. The operating landscape continued to be highly competitive in 2021 across mobile and fixed connectivity, and around opportunities from increasing digital adoption by consumers and businesses. Intensify acquisition and base management efforts to capture growth from digital and internet adoption Drive digital value proposition to grow B2B revenue and market shares Offer customers a broader range of services across in-house and partner offerings Provisioning of subsidies to consumers and SMEs through government-led initiatives such as Jaringan Prihatin and PENJANA SME Digitalisation Grant Capitals Further details of our Risk Management Framework are available in the Statement on Risk Management and Internal Control, pages 119 to 125 of this report. Risk Movement Digi regularly evaluates its operating landscape for latest changes to identify emerging risks that would affect our business. These are the key risks identified by Digi which have been subjected to regular scrutiny throughout 2021. Business Continuity Risk We are committed to providing high quality and consistent network services to our customers by ensuring the stability of all critical operations in retail centres, network and data centres, and supply chain. During the pandemic, business continuity measures were initiated to ensure uninterrupted operations across network, IT and our supply chain. Digi has maintained network availability and stability despite increased internet demand and addressed critical needs during natural disasters in a timely manner. Redundancy strategies, contingencies and segregation of critical functions Alternate sites established for critical functions such as customer service, call centre, network operations and field force to ensure continuity of services Dynamic sourcing and supply chain management to ensure adequate and contingency supply Risk Movement in 2021 Unchanged Risk Movement in 2021 Unchanged Capitals 33 Integrated Annual Report 2021 Governance Audited Financial Statements Other Information
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