REPORTING CONTEXT ABOUT US OUR OPERATING CONTEXT OUR PERFORMANCE OUR LEADERSHIP GOVERNANCE OUR FINANCIAL STATEMENTS SHAREHOLDERS' CORNER Potential impacts • Loss of vital know-how affects product and market sustainability and development. • Development and implementation of state-of-theart technology impeded by the difficulty of recruiting and retaining suitably qualified team members. • Inability to attract and retain skilled team members to enable safe, reliable and sustainable operation. • Production capacity reduced due to physical and psychological impact on team members. • Loss of team member trust as a reputable employer. • Reputational damage with external stakeholders. • Loss of revenue due to lawsuits or regulatory interventions (fines, etc). • Team member health and morale affected by pandemic, temporary closure of operations and the current challenging economic conditions. Associated opportunities • Develop long-term succession plans to create an in-house pipeline of qualified and experienced team members ready to lead and implement new projects and technologies as and when needed. • Strengthen our reputation as an employer of choice through constant respect for legislated workers’ rights and protection, promoting fair treatment and equal opportunities, and ensuring good health and safety practices in the workplace. • The performance management system ensures the development of our team members at all levels and nurtures talent, particularly in young highlyqualified recruits. • Succession planning strategies mitigate the departure, planned or otherwise, of key team members. • External managerial training is in place, aligned with PhoenixBev’s skills imperatives. • Regular team member surveys identify current or emerging issues that could affect retention and development. • Regular health and safety training for all team members to enhance safety behaviour. • Periodic meetings with team members representatives to anticipate any issues and facilitate communication. • GPS systems installed to monitor our fleet of distribution vehicles to optimise route planning and reduce driver fatigue. • Strict Covid-19 hygiene protocols at our operations, certified by LIBA’s Feel Safe label. • Financial support for mostaffected employees. Risk Impacts and opportunities Mitigation TREND 8. Team capabilities and needs (Internal) • Loss of key management and technical personnel through retirement or departure. • Increasing competition for talented team members. • Personnel not having the required skills to meet our future objectives. • Risk of industrial accidents at our operations. • Pandemic infection. • Increasing socio-economic pressure on team members. Potential impacts • Reduced sales volume and net sales revenue. • Loss of consumer trust resulting in damage to brand and corporate reputation. • Loss of market share. Associated opportunities • Fostering a strong reputation for quality assurance as an important differentiator in our competitive market. • Stringent quality control in place. • Food safety, quality and laboratory competence management systems implemented to minimise food safety and quality issues including globally recognised standards such as FSSC 22000, ISO/IEC 17025:2017, ISO 9001:2018 and LIBA Feel Safe. • Compliance to international partners’ requirements. • Robust recall and other appropriate crisis procedures in place to mitigate the impact, should an incident arise. Risk Impacts and opportunities Mitigation TREND Potential impacts • Inability to deliver IT requirements to support the growth of the business. • Cyber-attacks, IT infrastructure disruptions and loss of data. • Rapid spread of negative information through social media, including fake social media accounts. Associated opportunities • Opportunities to improve efficiency, bring new digital offerings quicker to market and lower the cost of servicing the market. • Increased connectivity creates opportunities to improve brand awareness and collect customer feedback. • Social media provides opportunities for organic brand awareness growth through online communities. • Common IT platform as a key enabler to unlock group synergies. • We are developing a roadmap of Group-wide IT requirements to ensure consistency of services and processes across all entities and protect our business from security threats and business interruptions. • Strong communication plans are in place on social media platforms. • Management of our social media sub-contracted to a specialised agency for better control. • We are implementing an enterprise resource management (ERP) system across our operations. Risk Impacts and opportunities Mitigation TREND 9. Product safety and integrity (internal) Prevention of poor product quality or contamination whether accidental or malicious, causing public health hazards. 10. Digital challenges (External and internal) • Rapid technological development impacting all aspects of our business. • Effective systems and processes critical in reducing costs, increasing flexibility, and driving efficiency and productivity. • Increased threat of cyberattacks, compromised infrastructure and data security due to the ubiquitous nature of technology. • Social media becoming increasingly powerful in shaping brand perceptions. CONTINUED RISK RISK REPORT 43 Phoenix Beverages Limited Integrated Report 2022 42 Phoenix Beverages Limited Integrated Report 2022
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