Fraser & Neave Holdings Bhd Annual Report 2021

Consumers are becoming more informed on nutritional facts of their diet and adoption of active/healthy lifestyles. This risk relates to the Group’s ability to stay competitive and relevant to consumer needs by building competitive advantage through innovation. Should we fail to address the shift in the consumer trends nimbly and e$ectively, it may result in financial as well as reputational impact in the longer term. RISK Link to material issues: • Prioritise Research & Development initiatives on developing new products and further improve our product o$erings to meet consumers’ demand for healthier choices such as low-sugar, non-sugar added and mid-calorie beverages, without compromising on taste. • Continuous improvement on the o$erings of healthier choice products in our innovation roadmap with target to o$er a healthy option in every product category that we are in. • Introduce new pack size as part of our portion control commitment. • Promote sports and active lifestyles through programs that target schools and communities. MITIGATION ACTIONS Ability to Anticipate/Respond Timely to Changing Consumer Needs (Emerging Risk) 4 The Group is exposed to risks associated with anticipated or unanticipated disruption to the supply chain and normal operations of the Group which could be due to internal or external factors such as extreme weather events, infectious diseases, etc. RISK Link to material issues: • Group Business Continuity Management Framework (BCMF) has been established which sets out the policies and procedures in relation to response, recovery and restoration of business in the event of a crisis or disaster. • Business Continuity Plans (BCP) are in place and being tested in accordance with the BCMF. • Regular engagement with internal and external stakeholders to ensure resilience in the supply of materials amidst supply chain disruptions. • Maintain healthy cashflow positions during crisis. • Ensure compliance with SOPs issued by government. MITIGATION ACTIONS Supply Chain Risks 5 Amid the evolving technology-reliant business environment, the Group is exposed to cyber security threats from cyber criminals which may compromise data integrity and even leakage of confidential and sensitive information which is valuable to the Group. RISK Link to material issues: • The Group has developed Cybersecurity Framework to provide guidance to businesses on managing cyber security risks. • Regular trainings via e-Learning platform and constant updates related to cyber threats are provided to all employees to maintain awareness level. • Implementation of Data Leakage Protection solutions to mitigate cyber threats and data security risks. MITIGATION ACTIONS Cyber Threats and Data Security Risks 6 058 S t r a t e g i c R e v i e w KEY RISKS AND MI T IGAT ION