Fraser & Neave Holdings Bhd Annual Report 2021

MATERIAL ISSUES KEY RISKS Economic Social Environment Financial/economic Strategic Governance & Ethics Reputational Operational Product Quality & Safety Product & Service Labelling Other Financial Risks Significant Increase in Commodity Prices Supply Chain Stewardship Strategic Risk Involving New Business Investment Governance & Ethics Inability to Anticipate/Respond Timely to Changing Consumer Needs Economic Performance Risk from Disruptive Digital Technology & Innovation Policy & Regulation Corruption, Fraud, Pilferage & Ethical Risks Innovation Non-compliance with Laws, Rules, Regulations & Standards Nutrition Managing Stakeholders, Expectations & Perceptions Human Rights Environmental Damage Community Development & Inclusive Growth Political/International Instability & Geopolitical Risk Employee Safety, Health & Well-being Product Quality & Standards Infectious Disease Human Capital Development Health, Safety & Security Packaging Cyber Threats & Data Security Risk Waste Management Water Stewardship Talent Management & Succession Planning Energy Supply Chain Risks Climate Change Biodiversity SNAPSHOT OF THE ENTERPRISE RISK MANAGEMENT PROCESS FLOW Continuous risk assessment at fundamental and Operations level through its self-assessment scorecard Key risks, mitigating actions or controls carried out and residual rating are highlighted to the Sustainability and Risk Management Committee quarterly Risk Identification & Assessment Four core response strategies: • Accept • Avoid • Reduce • Transfer Risk Treatment Risk Reporting 056 S t r a t e g i c R e v i e w Key Risks and Mitigation