Key risk Risk category Risk description Digitalisation risk Strategic Negative impacts or vulnerabilities that arise from adopting and relying on digital technologies Geopolitical risk Strategic Negative impacts on business due to international political | key events (wars, trade disputes, elections, sanctions, etc) Business performance risk Operational Inability to achieve business targets due to external and internal performance-related factors Cyber risk Operational Data loss and business disruptions caused by cyberattacks Supply chain risk Operational Disruptions in obtaining necessary resources and delivering goods or services Talent risk Operational Challenges of attracting and retaining key talent Adverse regulatory risk Regulatory Impacts on business arising from changes in laws, regulations or government policies Compliance risk Regulatory Damages from failing to adhere to industry standards, laws and regulations Sustainability risk Sustainability Failure to address the climate change-related risks, by not prioritising efforts towards lowering carbon emissions, advancing circular economy initiatives (related to water, waste and renewable resources) and conserving nature and biodiversity Safety risk Reputation Deficiency in containment of safety hazards (process, product and workplace) Risk categories and descriptions Approach to risk management: Enterprise risk management (ERM) is a core component of the business model of our Company and the framework has progressively matured over the years. It encompasses the identification, classification, assessment, prioritisation, mitigation, monitoring and reporting of key risks. We employ both bottom-up and top-down approaches to implement ERM effectively. The bottom-up approach involves the identification and regular assessment of risks by individual business units and cross-functional teams, along with the development of structured mitigation plans. A top-down approach complements this, with Senior Management ensuring the robustness of the framework, assessing the effectiveness of mitigation strategies and addressing long-term and macro-level risks. To establish clear focus areas and prioritise mitigation efforts, risks are categorised under major themes. To oversee this process, our Company has established an ERM Council comprising members of Senior Management. The ERM is overseen by the Board of Directors through the Risk Management Committee of the Board. 26 Integrated Annual Report 2024-25
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