RISKS & STRATEGIES

The Group has identified and determined significant risks through the risk management process. The risks set out below are those that the Group believes could adversely affect the Group’s financial condition or results of operations differing materially from expected or historical results. There may be other risks in addition to those shown below which are not known to the Group or which may not be material now but could turn out to be material in the future.

• The technology, Internet, gaming and consumer electronics industry continues to be highly competitive, innovative and ever-changing. Consumer preferences continue to evolve and products and services have increasingly shorter life cycles. Therefore, the Group’s ability to anticipate, gauge and respond to these changing consumer preferences and technological trends in a timely manner, while maintaining the authenticity of our brand, quality and relevance of our products remains a key challenge. In staying competitive, the Group focuses on attracting new consumers while expanding its existing market share. In view of these challenges, the absence of or any lag in new technology and product innovation would impair the core competitiveness of the Group.

• The Group has also believes that sustainability initiatives provide it with a competitive advantage. To this end, the Group has implemented programmes such as a partnership with a leading inspection and

Competitive Landscape Information Security Risk

• Protecting user data is a priority of the Group, and the Group is fully aware that any loss or leakage of sensitive user information could have a negative impact on affected users and the Group’s reputation, even leading to potential legal liability.

• The Group is obliged to protect sensitive user information and as such, the Group strives to provide the highest level of protection to such data. The Group has formulated policies and control measures to protect user data. Information security is ensured through a layered information security framework that includes endpoint security, firewalls, vulnerability certification company to develop product category rules for all gaming products. With the introduction of this Type III Environmental Product Declaration (“EPD”) ecolabel, consumers will be able to make more informed choices about the environmental impact of their purchases. The Group encourages its employees to innovate and allocates considerable resources (including hiring personnel) to the research and development of new technologies and the optimisation of features as well as enhancement of user experience of products. The Group continues to actively monitor its competitive environment and market trends. scanning, multi-factor authentication, encryption, access restrictions and process protocols.

• The Group also closely monitors global financial and physical supply chain developments, its product lifecycle management and maintains oversight over its third-party manufacturers’ and service providers’ capabilities and performance in order to enable the Group to bring its products and services to the market in a timely manner.

• The Information Security Council, established in 2020, continues to provide guidance on Group level policies and procedures relating to risk-management governance, procedures and controls, implementation of information security programs as well as cybersecurity awareness training. The Group, through the Information Security function, continues to invest in enhancing its security posture with identification of areas where security policies and processes can be further strengthened.

• The Group’s branding and intellectual property (“IP”) assets are critical to our business. In order to protect these IP assets, the Group relies on a combination of trademark, patent, design and other IP-related laws within the jurisdictions in which we operate, as well as confidentiality agreements signed with stakeholders that we work with.

Intellectual Property Risk Legal And Compliance Risk

• Regulatory authorities in numerous jurisdictions, in efforts to keep up with technology, fintech and Internet industries, have been developing more comprehensive and stringent industry regulations. As the Group required to comply with applicable laws and regulations in different jurisdictions that are specifically relevant to the Group’s businesses, such as laws relating to data protection, Internet information security, IP, gaming fintech and others.

• In order to mitigate these risks, we have a dedicated IP team managing legal matters involving our business’ trademarks, patents, designs, and other IP rights. The Group monitors IP-related matters and undertakes legal recourse against infringement. The Group registers its IP rights across jurisdictions and binds contractual parties to IP clauses in agreements to govern and enforce the Group’s IP rights.

• The Group has teams of professionals that work closely with management of business groups to monitor and identify changes in any relevant laws and regulations, so as to take appropriate actions or measures to ensure the Group is in compliance with applicable laws and regulations. The Group also leverages on third party professional firms to provide advisory and compliance consulting services.

Acquisition And Investment Management Risk

• As the Group engages in investment activities that further enhance and strengthen its existing ecosystem, it is important for the Group to adopt robust procedures in the formulation of investment strategies and processes and treasury management both at the investment evaluation and postinvestment phase. Inability to promptly manage investment risks may hinder the realization of the Group’s investment strategies and may result in financial loss, operational inefficiency, or reputational damage to the Group.

People Risk

• The Group’s success is dependent upon its ability to attract, mobilise and retain the right talent and skills, as well as ensuring a strong succession and leadership pipeline. These factors are instrumental for the Group to remain as an organisation that is agile and adaptable to change as the Group grows and enhances its performance and reputation. The Group’s success also substantially depends on the leadership continuity to foster behaviours that are aligned to Razer’s corporate values across its people practices. In order to mitigate these risks, the Group proactively seeks to enhance HR systems, capabilities and processes to collect, understand and organise people data. The Group actively looks out for talented and experienced personnel to join the Group and has also established a succession plan for key personnel and senior management. Razer Academy has been established to set the framework for learning and development and provide access to mandatory courses. The Group continues to invest in talent, manager and leadership development programs to build talent capability and accelerate the internal movement of top talent.

• In order to mitigate this risk, there is an Investment Committee that approves all potential strategic investments or acquisitions. A dedicated Investment team is responsible for identifying and evaluating investment opportunities for the Group, performing a rigorous due diligence process prior to submission to the Investment Committee for consideration. There is a regular review of the Group’s treasury position which explores our different financing channels and capabilities to meet the needs of the group’s business operations and acquisitions.