IHH Healthcare Berhad | Annual Report 2024 52 Strategic Report Principal Risks With a well-designed risk management system, the Group is able to identify, track, and mitigate the principal risks associated with our operations. This system enables the Group to make well-informed decisions and have visibility of risk-return trade-offs. Key Area Principal Risks Factor Description Strategic Geopolitical shifts, regional conflicts and changes in international trade dynamics have intensified, potentially affecting the Group’s resilience and business strategies. Not addressing these risks and failure to capitalise on emerging opportunities could expose the business to significant disruption and hinder its ability to thrive in this evolving landscape. Cyber and Technology The healthcare industry faces an increased risk of information security breaches. The industry is an appealing and lucrative target due to the sensitive nature of personal and medical information that is required to maintain healthcare operations and patient care. The interconnected nature of healthcare infrastructure, combined with the growing dependence on digital technologies, intensifies the vulnerability to potential breaches. Such breaches may result in disruptions to business activities and may also subject the respective markets to penalties and legal action should such breaches result in violating any regulations. Additionally, the use of AI technology continues to emerge as a notable topic. The usage of AI-assisted tools presents the risk of misinformation spreading at a pace that may be faster than the organisation’s ability to respond, thereby posing reputational and other consequential threats. Also, AI tools may be subject to bias and hallucination that may mislead the user to an incorrect decision. Pre-mitigation risk remained unchanged Pre-mitigation risk increased Pre-mitigation risk decreased Trend indicates change in pre-mitigation risk level over the year:
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