Press Metal Aluminium Holdings Berhad SECTION 3 • CHARTING THE PATHWAY TOWARDS EXCELLENCE 36 Managing Our Risks and Opportunities Effectively Economic and Financial Risks Financial and economic pressures can introduce uncertainty over profitability, cash flow, and long-term stability. Factors such as liquidity constraints, interest rate changes, and currency fluctuations have the potential to raise operational costs and impact borrowing expenses, influencing overall business performance. Opportunities • Maintaining a solid financial position and a positive credit rating through strategic cost management and prudent financial planning. • Effectively managing financial risks by utilising commodity and forward forex contract hedging to mitigate exposure to price and currency fluctuations. Financial Progress Deviation and Financial Returns Risks Investment risks can emerge when pursuing acquisitions or new ventures, where unforeseen changes in economic conditions, regulatory requirements, or social and governance factors can impact expected outcomes. These uncertainties could lead to operational setbacks or financial shortfalls, potentially undermining the overall success and stability of the investment. Opportunities • Investing in upstream and downstream segments to enhance supply chain resilience and efficiency. Investment Product Quality and Manufacturing Efficiency Risks Issues in quality control or planning can result in defects, delays, and dissatisfied customers. Additionally, breakdowns in systems and technology may disrupt production, reducing efficiency and affecting overall productivity. Such challenges could weaken financial performance and undermine stakeholder confidence in the organisation’s ability to maintain consistent standards. Opportunities • Investing in upstream and downstream segments to enhance supply chain resilience and efficiency. • Ensuring operational continuity by maintaining standard operating procedures, while reinforcing data security and resilience through cloud-based system backups and off-site servers. Operational Link to Capitals Link to Material Matter F M Link to Capitals Link to Material Matter F M I M H SR Link to Capitals Link to Material Matter M1 M3 M7 M1 M3 M7 M5 M6
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