DATAPULSE TECHNOLOGY LIMITED ANNUAL

Risk Management

Risk Management The Group adopts a comprehensive and systematic approach towards Enterprise Risk Management (“ERM”) to help identify, measure, prioritise and respond to the risks challenging its objectives, initiatives, and day-to-day operating activities. As part of the Group’s approach towards ERM, the Group has conducted on an annual basis a Risk Assessment exercise where the key risks of the Group have been identified and evaluated. In addition, the Group evaluates its risk exposure based on the likelihood and impact of each risk identified. The Group recognises risk management as a collective effort beginning with the individual subsidiaries and business units, followed by the operating segments and ultimately Management and the Board, working as a team. Internal Controls A system of internal controls has been implemented to enhance the Group’s internal control function in areas such as finance, operations, compliance and information technology. The internal control measures aim to ensure that the Group’s assets are safeguarded, proper accounting records are maintained, and that financial information used within the business and for reporting is reliable. Risk Committee The responsibility of overseeing the Company’s risk management framework and policies is undertaken by the AC with the assistance of the internal auditors. Having considered the Company’s business operations as well as its existing internal controls and risk management systems, the Board is of the view that a separate Risk Committee is not required for the time being. Provision 9.2 Adequacy and Effectiveness of Risk Management and Internal Control Systems ERM is an essential part of the Group’s business planning and monitoring process, and has been incorporated into its business cycle. The Group engages a professional audit firm, CLA Global TS Risk Advisory Pte. Ltd. (formerly known as Nexia TS Risk Advisory Pte. Ltd.) (“Nexia”) to conduct internal audit reviews based on the plan approved by the AC. During the year, the AC also reviewed reports submitted by the internal auditors relating to the effectiveness of the Group’s internal controls, including the adequacy of the Group’s financial, operational, compliance and information technology controls. Board’s Comment on Adequacy and Effectiveness of Risk Management and Internal Controls The Board is satisfied that the Company has worked cl