REPORTING CONTEXT ABOUT US OUR OPERATING CONTEXT OUR PERFORMANCE OUR LEADERSHIP GOVERNANCE OUR FINANCIAL STATEMENTS SHAREHOLDERS' CORNER Low Moderate High Extreme Qualitative measures of severity/Consequences/Impact Level Description Description detail 1 Insignificant Low financial loss, no injuries (for operations) 2 Minor Medium financial loss, first aid treatment, on-site release immediately contained (for operations) 3 Moderate High financial loss, medical treatment required, on-site release contained with outside assistance (for operations) 4 Major Major financial loss, extensive injuries, loss of production capability, off-site release with no detrimental effects (for operations) 5 Catastrophic Huge financial loss, death, toxic release off-site with detrimental effect (for operations) Qualitative measures of likelihood Level Description Description detail A Almost certain Is expected to occur in most circumstances B Likely Will probably occur in most circumstances C Possible Might occur some time D Unlikely Could occur at some time E Rare May occur only in exceptional circumstances RESIDUAL RISK SIGNIFICANCE MATRIX Insignificant Minor Moderate Major Catastrophic 1 2 3 4 5 5 4 8 10 11 7 1 2 12 6 9 3 SEVERITY Likelihood A – Almost Certain B – Likely C – Possible D – Unlikely E – Rare Our top risks The table below shows our top risks, their potential impact on the Group, the related opportunities and how we mitigate these risks to an acceptable level. Potential impacts • Team members affected and operations unable to function properly. • Social/physical distancing and concerns around gatherings cause some of our customers to go out of business. • Delayed recovery affects consumers and reduces demand for our products. • Mismatch between costs and revenues. • Shortages of resources and supply chain delays for essential supplies including raw and packaging materials, energy, spare parts, services, etc. • Increased inflation, interest rates and taxes, and depreciation of the Mauritian Rupee. • Shortages of foreign currencies to pay suppliers. • Lockdown and closure of borders. Associated opportunities • Support for team members, customers and communities strengthens our relationships with these key stakeholders. • Working with customers to create safe places for consumers to interact and have fun while supporting recovery at industry and society levels. • Implement strict hygiene protocols at operations, including Covid-19 sanitary protocols and certification by LIBA’s Feel Safe label, and execute our Business Continuity Plan. • Support customers to help them trade through, develop our online consumer platform and direct to consumer shops. • Our product range provides cost-effective options and packaging that suit customers and consumers. • Strict focus on cost controls, reducing discretionary operating and capital expenditure. • Closely monitor cash flows, receivables and regular forecasting. • Regular engagements with authorities, review and renegotiation of contracts, costs and pricing. • Optimise foreign exchange management. • Rigorous demand planning for raw materials and increased stock levels. • Develop back-up suppliers for critical materials. Risk Impacts and opportunities Mitigation RISK RISK REPORT 1. Pandemic (External) Pandemics present a significant public health risk. Steps taken to prevent their spread may have a severe impact on local, regional and global economies. The timing, speed and nature of the recovery is uncertain. TREND Increase Decrease Stable CONTINUED TREND 37 Phoenix Beverages Limited Integrated Report 2022 36 Phoenix Beverages Limited Integrated Report 2022
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