Charting the Pathway Towards Excellence Charting the Pathway Towards Excellence Press Metal Aluminium Holdings Berhad 32 33 Integrated Annual Report 2023 Managing Our Risks and Opportunities Effectively HUMAN CAPITAL Talent Acquisition and Retention Capabilities Risks Risks stemming from insufficient human capital management practices and processes may result in potential disruptions to our business operations and the loss of institutional knowledge and expertise. Additionally, they could contribute to a higher employee attrition rate and unfavourably impact employees’ morale and performance. These adverse outcomes could hinder succession planning, increasing reliance on external candidates for leadership positions and potentially causing strategic misalignments due to differences in competencies and values among leadership teams. Opportunities • Enhancing business value through retention of high-performing employees, thereby enhancing our institutional knowledge. • Minimising recruitment and onboarding costs and ensuring business continuity by cultivating and maintaining a pipeline of skilled leaders from within our organisation. Link to Capitals HC IC SRC Link to Material Matter M16 M17 HEALTH AND SAFETY Health and Safety at the Workplace Risks We prioritise safety and well-being of our employees by implementing robust and sound management system and adhere strictly to the Occupational Safety and Health Act 1994 (“OSHA 1994”) and other regulatory requirements. We implement proactive risk management strategies and continuously oversee operational processes to identify and mitigate potential hazards for both our employees and contractors, thereby reducing the likelihood of accidents and injuries. This comprehensive approach not only enhances productivity and drives cost savings but also preserves our reputation as a responsible organisation. In addition, it fosters greater trust with shareholders and attracting skilled talents to our workforce. Opportunities • Fostering a culture of safety within the organisation by maintaining zero (0) fatalities and driving a reduced LTIFR. • Building trust with our employees by having robust and sound management system in place and ensuring strict compliance of safety and health standards, thus driving higher productivity and operational efficiency. Link to Material Matter M14 Link to Capitals HC SRC Managing Our Risks and Opportunities Effectively REGULATORY/ SOCIAL Modern Slavery Risks Instances of modern slavery, including forced or child labour and human rights violations, may occur across our value chain. It is imperative to recognise and mitigate these risks by upholding ethical business standards, complying with legal requirements, and safeguarding the well-being of our stakeholders across our value chain. Poor management of these risks may lead to severe consequences ranging from legal repercussions to reputation damage that erodes shareholders’ trust. Opportunities • Strengthening market competitiveness by embracing ethical social practices, attracting socially-conscious customers and investors who align with our values. • Facilitating strategic partnerships and market access through robust management and adherence to international labour standards. Link to Material Matter M4 M15 M16 M17 Link to Capitals HC SRC TECHNOLOGY Information Security Risks With the adoption of digital technologies, we face increased exposure to cyberthreats and breaches of data privacy that could pose consequential impacts on business continuity or organisational reputation, leading to a loss of revenue and reduced competitive advantage. Opportunities • Maintaining strong network security to ensure smooth business operations and protect assets from unauthorised access and breaches. • Building resilience against cyber attacks through robust cybersecurity practices to preserve stakeholders’ trust. Link to Material Matter M8 FC HC IC Link to Capitals Supply Chain Security Risks The aluminium industry is reliant on a multifaceted supply chain that is susceptible to risks stemming from global economic and political dynamics. Geopolitical instability, regulatory changes, and economic fluctuations have the potential to disrupt supply chains, increase raw material costs, and impede product distribution. These circumstances may pose significant challenges to our operational effectiveness, inventory control, and achievement of sales objectives. Furthermore, inadequate supplier selection practices and insufficient due diligence regarding human rights and environmental standards may result in legal and reputational challenges. These issues can lead to operational disruptions, escalate costs, and ultimately influence revenue generation and profitability. MARKET Opportunities • Safeguarding our business continuity by identifying alternative suppliers, enabling us to mitigate the impact of supplier disruptions or price increases. • Maintaining customer relationships and satisfaction by providing high standards of product quality, delivery and quality standards. Link to Capitals MC HC IC SRC Link to Material Matter M4 M5 M6
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