Integrated Annual Report 2024 SECTION 3 • CHARTING THE PATHWAY TOWARDS EXCELLENCE 35 Managing Our Risks and Opportunities Effectively Information Security Risks As digital technologies become more integrated into operations, the risk of cyber threats and data breaches may arise, potentially disrupting business continuity that may lead to financial losses and reputation harm. The evolving regulatory landscape, including the newly amended PDPA in 2024, demands ongoing adaptation to maintain compliance. Inadequate cybersecurity awareness among employees increases the risk of human error, making the organisation more susceptible to cybercrime. Opportunities • Strengthening network security to safeguard business operations and prevent unauthorised access or data breaches. • Enhancing resilience against cyber threats with robust cybersecurity measures to maintain stakeholder confidence. Technology Supply Chain Security Risks The aluminium industry operates within a vast and interconnected supply chain, making it susceptible to disruptions caused by geopolitical tensions, regulatory shifts, and market fluctuations. These challenges can result in rising raw material costs, delays in product distribution, and operational inefficiencies. In addition, there is increasing scrutiny on responsible sourcing, GHG emissions reduction efforts, and fair labour practices, requiring companies to ensure compliance across their supply networks. Regulatory developments, such as the proposed EU’s Corporate Sustainability Due Diligence Directive, increase the responsibility on businesses to address environmental and human rights risks within their supply chains. Companies that do not meet these expectations may face legal consequences, reputational damage, and financial strain. Without rigorous supplier assessments and due diligence, organisations risk exposure to unethical sourcing practices and sustainability concerns, potentially affecting stakeholder confidence and long-term business resilience. Opportunities • Ensuring supply chain resilience through risk assessments, identifying vulnerabilities, and implementing proactive measures such as diversifying suppliers and securing alternative sourcing options to minimise disruptions and cost volatility. • Securing long-term raw material supply through strategic joint ventures, including establishing an alumina refinery in West Kalimantan, Indonesia, ensuring greater control over upstream operations and cost efficiency. • Upholding customer satisfaction by maintaining consistent product quality, timely delivery, and adherence to stringent industry standards, reinforcing trust and long-term relationships. • Promoting sustainable supply chain practices by working closely with suppliers to enhance their capabilities, support responsible sourcing, and align with global sustainability expectations. Market F I H Link to Capitals M8 Link to Material Matter I M H SR Link to Capitals Link to Material Matter M4 M9 M15
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