RISK RISK DESCRIPTION MITIGATION PLAN MANAGEMENT DISCUSSION AND ANALYSIS The Group is cognisant of the fact that it is exposed to various risks that may have a material impact on its business operations and financial performance. As such, the Manager has identified the following key risks and established mitigation plans: Section 4 - RISK MANAGEMENT The Group may face a decline in revenue due to unfavourable market condition, increased competition, changes in tenant’s business strategies, changes in government regulations and outbreak of pandemics. However, the competitive pressure is relatively low because KPJ Group holds a dominant market position and has strong presence across all states in Malaysia. Furthermore, hospital business has been resilient throughout the history, with the exception of the COVID-19 pandemic period in 2020-2021. The Manager monitors the operating environment closely and strategises with its business partners, so that it can implement the mitigation plans swiftly, such as repositioning or divesting the assets, to ensure that the Group’s rental income is not affected. Business and Market 34 BUSINESS OVERVIEW 1 3 4 5 6 AL-`AQAR HEALTHCARE REIT ANNUAL REPORT 2023
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