Principal Risks Strategic Report Key Area Principal Risks Factor Description Environmental, Social, and Governance (ESG) There has been a notable uptick in the occurrence of extreme weather events worldwide largely attributed to climate change, driving greater attention from regulators and other stakeholders towards organisations’ sustainable practices. ESG expectations and compliance evolve rapidly and this poses challenges to the Group, given that regulatory requirements vary across countries. More crucially, extreme and adverse weather events in certain markets can significantly impact hospital operations, in which essential services and supplies would be disrupted, hampering a facility’s ability to deliver medical care. Financial The Group has experienced an overall increase in inflation rate. Türkiye’s hyperinflation can pose a challenge to the Group’s financial performance, as its associated uncertainties hamper our ability to accurately forecast costs and revenues. Further, the healthcare supply chain is experiencing a rise in input costs due to inflation at the global level. If this trend continues, the Group may have to choose between passing on the increased costs to patients and maintaining affordability of healthcare and ensuring adequate access to patient care. People and Culture The notable trend of nurses leaving the profession, leading to manpower constraints remains a global concern faced by both the private and public sectors. A prolonged nursing shortage may have severe implications to our hospital operations, especially on the quality of care delivered in which patient experience and safety could be compromised. IHH Healthcare Berhad 58
RkJQdWJsaXNoZXIy NDgzMzc=