SWIRE PROPERTIES ANNUAL REPORT 2023 Existing Risks and Possible Impacts Risk Trend Mitigation Measures Business risks • Obtain suitable reserves of land, reinforce existing The lack of compelling development assets and actively explore investment opportunities projects may lead to a slowdown in business. especially to focus on strategic locations which will Disruptive business models, technologies bring synergy with the existing portfolios and prime and demographic factors are changing the locations with strong growth prospect. behaviour and needs of tenant rapidly, • Monitor and evaluate disruptive business models, leading to a new form of demand and with a view to making our operations more robust. space design. • Enhance competitiveness by increasing efficiency, using appropriate technology for customer proposition and operational procedures. Cybersecurity and data protection • Policies on information and cyber security are in Delay in the compliance of fast changing place with regular updates. regulatory requirements, insufficient data • Staff trainings, incident response drills and security protection system and policies may simulation tests are conducted regularly to raise the expose the Company to cyber-attack with awareness of data security across the Company. potential financial and reputational • Regular evaluation and upgrading of the latest consequences. technologies on information security. • Insurance policy for cyber and crime are in place to transfer the risk and to reduce financial losses. Development risks • Closely work with contractors to monitor and Delay in the completion of developments manage construction progress to avoid delays in may have an adverse financial effect by case of changing design and unexpected delaying the timing of property sales and circumstances. leasing. Cost inflation may also lead to • Stringent contractor prequalification requirements significant financial impact due to economic including financial position, manpower resources, volatilities, supply chain issues and labour resilience against geopolitical impact. shortage. • Build in contingencies for statutory approvals and communicate with government authorities on a timely basis. 115