Blue Sky Limited ("Blue Sky") is a budget airline that is listed on the Main Board of the Singapore Stock Exchange. It operates in the Asia Pacific region. In 2020, Blue Sky's passenger carriage had dropped by 85% as air travel demand were severely curtailed by the COVID pandemic worldwide. The viability of the business was at stake. In March 2021, Blue Sky reported its first annual net loss in its 20-year history of S$35million for the 12 months ended 31 December 2020. In April 2021, the group decided to diversify its business to restaurant and catering business. The new business group will operate under the brand name "Makan Sutra". The core business of the Makan Sutra group (MSG) will be the operation of food and beverage (F&B) outlets and food catering. MSG will employ 500 staff from Blue Sky who would otherwise be redundant and retrenched if the COVID pandemic situation does not improve for a prolonged period. The Head of Inflight Catering was appointed the CEO to head the MSG business. The Human Resource Department was responsible for the skills conversion programmes to train and equip the Blue Sky staff for their new job roles. Employees who are not keen to be deployed to MSG will have to resign from the company. MSG's business comprises: Catering Business under MS Catering & Supplies ("MSC") Blue Sky acquired a 100% stake in a local family business with an established food catering business in Singapore. The group paid S$1,188,000 for the acquisition. The founder of the catering business will remain as Advisors to the business for three years before making a complete exit from the company. The central kitchen will prepare the ingredients and semi-processed food such as laksa paste, sambal, sauces, soup stock etc., to be delivered to the F&B outlets. The long term plan is for MS Catering & Supplies is to be Singapore's major food manufacturer supplying semi-processed ingredients, sauces and pastes to restaurants and hawkers all over Singapore. b. F&B Outlets under Makan Sutra Caf ("MS Cafe") The in-flight food served by Blue Sky is very popular among travellers and is well known for local Singapore favourites like chicken rice, nasi lemak, char kuay teow, roti prata, just to name a few. MSG opened its flagship restaurant, MS Caf in Jewel Changi Airport in June 2021, serving the Blue Sky In-flight service menu and other local Singapore favourites. By end of 2022, Makan Sutra plans to operate at least 6 MS Cafs all over Singapore. a. C. An online platform has also been developed for e-orders pick-up and home deliveries. MS Caf works with the Speedy Panda, Tapao King and Road Runner for food deliveries to customers. Designed to enhance customers' dining experience through a personalised digital journey, MS Caf will launch a mobile application featuring a smart menu equipped with Artificial Intelligence and Machine Learning, which is able to recommend popular dishes based on "dish out" time, past ordering patterns as well as demographic taste. The long term plan over the next 3 years will be to expand to China, Taiwan and Hong Kong and Indonesia on a franchisee model. Required: (a) Discuss what are MSG's continuing obligations under the SGX listing rules in relation to the group's business diversification plans. You are required to identify the relevant listing rules that would apply for approval and disclosure requirements. (10 marks) (b) As the Enterprise Risk Management (ERM) Director of the group, you required to submit the updated risk profile for the new business group i.e. Makan Sutra's food processing and F&B business, to the Board Risk Committee (BRC), To do this, use the "Business Model Canvas" provided in Appendix 1, to assess the Company's business model and discuss key risks of the business. (30 marks) (c) The CEO of MSG is responsible for providing leadership and strategic direction to the management team to execute plans that are aligned with the approved strategy and within the approved risk appetite and risk tolerance set by the Board. To undertake this role and effectively discharge his responsibilities, he would like to establish a Management Risk Committee (MRC) that he will chair, to maintain oversight of risks facing MSG and direct all employees or teams to proactively identify, assess, prioritise, respond to, and report risks that may impede the ability to achieve the desired outcome. As the ERM Director, he would like you to advise him on the following: (i) Discuss what would be an appropriate composition of the MRC. You can provide your assumptions of the management structure of the MSG and identify the relevant representatives that should be part of the MRC. (ii) Analyse and illustrate or indicate how should the MRC undertake the leadership, oversight and monitoring roles to report and be held accountable to the BRC for risk management. (12 marks) (d) The Board and CEO is concerned about data security breaches associated with the online and mobile platforms. As the Chief Security Officer and also the Data Protection Offer (DPO), discuss and formulate what are the key risk mitigation measures that MSG should put in place to manage and mitigate data security risks (including requirements to comply with the Personal Data Protection Act or PDPA) (14 marks)