STRATEGIC RISK A large part of the Group’s strategic risks comprises market-driven forces, evolving business landscapes, changing customer demands and disruptive innovations. The Group remains vulnerable to uncertainties in the major economies, implications from geopolitical developments, keen competition and pressure in the real estate and hospitality industry. Market and Competition Given the geographical diversity of our business, the Group is exposed to various levels of event risks in major economies, as well as in key financial and property markets in which we operate. The Group’s principal business operations, comprising property development, property investment and hotel operations, face significant competition across the diverse markets in which it operates, and the failure to compete effectively in terms of price, market positioning, product quality, and levels of service could adversely affect the Groups’ financial condition and results of operations. We manage this risk by: a) Monitoring macroeconomic trends, market conditions, and developments, and formulating responses and pre-emptive strategies accordingly. b) Leveraging our market analytics and project delivery expertise to introduce quality products and innovative solutions to meet evolving consumer demands. c) Strengthening our brand and competitiveness through product differentiation, market positioning, operational efficiency, transformation through innovation and creating new revenue generating platforms, as well as leveraging a portfolio of distribution channel partners. d) Diversifying of portfolio across geographies, focusing on core markets and cities where the Group has operational scale, and where underlying economic fundamentals are more robust. e) Distinguishing the quality, value, and efficiency of our lodging products and services by focusing on delivering a seamless customer experience, including our Loyalty Program, direct booking channels, and consumer-facing technology platforms and services, from those offered by others. We identify opportunities and improvements by: • Leveraging our market expertise and strategic positioning to be recognised as an innovative creator of quality and sustainable spaces in key markets. Brand and Reputation The Group’s reputation plays a major part in the continued success of the business. The assessment of reputational risk due to its nature, is constantly evolving and dependent on numerous factors at any given point in time, and therefore it is not possible to define all matters and circumstances which may pose reputational risk, or to outline all the considerations which should be applied as part of the decision-making process. We manage this risk by: a) Undertaking active monitoring of both traditional and social media platforms, quickly responding to and managing any undesirable situation(s) that may arise. b) Raising the profile of our brands through marketing campaigns and strategic partnerships to build and enhance brand equity. c) Focusing on a customer-centric approach, and monitoring customer satisfaction closely through surveys, gathering feedback, inspections and other forms of engagement. d) Establishing brand standards that are designed to maintain a level of product consistency based on the brand collection to which a hotel belongs, whilst allowing flexibility in order to maintain the personality of the property. e) Striving to avoid any situations and/or actions that could result in a negative impact on our reputation and brand. We identify opportunities and improvements by: • Developing crisis management plans and conducting table-top exercises to identify and enhance the Group’s ability to respond swiftly and effectively in unexpected situations. ANNUAL REPORT 2024 CORPORATE GOVERNANCE 37
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