Fraser & Neave Holdings Bhd Annual Report 2020

077 ANNUAL REPORT 2020 03 md&a INCREASING AWARENESS ASSOCIATED WITH EXCESSIVE SUGAR CONSUMPTION OPERATIONAL DISRUPTION IN THE EVENT OF CRISIS OR DISASTER CYBER SECURITY THREATS NEGATIVE PERCEPTION STEMMING FROM NEWS IN RELATION TO HALAL COMPLIANT STATUS RISK Consumers are becoming more informed on possible health effects associated with excessive sugar consumption. While adapting to the recently implemented and/or impending policy changes on sugar tax within the region, the challenge faced by the Group today is how do we move beyond sugar reduction. Should we fail to address the shift in the consumer trends nimbly and effectively, it may result in financial as well as reputational impact in the longer term. RISK The Group is exposed to risks associated with anticipated or unanticipated disruption to the normal operations of the Group which could be due to internal or external factors. RISK Amid the evolving technology-reliant business environment, the Group is exposed to cyber security threats from cyber criminals which may compromise data integrity and even leakage of confidential and sensitive information which is valuable to the Group. RISK Living in the age of social media, it is difficult to immune from false allegations in particularly where the Group’s Halal compliant status is concerned. MITIGATION ACTIONS • Continuous improvement on the offerings of healthier choice products in our innovations roadmap with target to offer a healthy option in every product category that we are in by 2020. • Prioritise R&D on developing new products and further improve existing products to meet consumers’ demand for healthier choices such as low- sugar, non-sugar added and mid-calorie beverages, without compromising on taste. • Proactively decrease our sugar index (amount of sugar contained per millilitre of all our beverages). • Introduce new pack size as part of our portion control commitment. • Promote sports and active lifestyles through programs that target schools and communities. MITIGATION ACTIONS • Group Business Continuity Management Framework (BCMF) has been establishedwhich sets out the policies and procedures in relation to response, recovery and restoration of business in the event of a crisis or disaster. • Business Continuity Plans (BCP) are in place and being tested in accordance with the BCMF. • Regular engagement with internal and external stakeholders to balance stakeholders needs. • Maintain healthy cashflow positions during crisis. • Ensure compliance with SOPs issued by government. MITIGATION ACTIONS • The Group has developed Cybersecurity Framework to provide guidance to businesses on managing cyber security risks. • Regular trainings and constant updates related to cyber threats are provided to all employees to maintain awareness level. MITIGATION ACTIONS • Halal Governance and Assurance Framework is put in place with dedicated resources to implement the framework and uphold the Halal standards. • Stringent compliance with Halal standards from sourcing of raw materials to delivery of products. • Close monitoring of news published in the media and response procedures are in place to manage situations. LEGENDS Economic Performance Sustainable Sourcing Occupational Health & Safety Innovation Product & Service Labelling Packaging Consumer Health & Safety Creating Value for Society LINK TO MATERIAL ISSUES LINK TO MATERIAL ISSUES LINK TO MATERIAL ISSUES LINK TO MATERIAL ISSUES