58 C I M F I N A N C I A L S E R V I C E S L T D OUR PRINCIPAL RISKS CimFinance continuously reviews its principal risks to ensure an appropriate understanding of the overall operating environment, which was significantly disrupted by the global spread of COVID-19 and the nationwide lockdowns in 2020 and 2021. The public policy measures have largely contributed to minimising the economic damage and protecting the stability of the financial sectors, principally by safeguarding employment and limiting corporate defaults. Since the emergence of COVID-19 in 2020 and the economic and social uncertainty surrounding it, we have enhanced our approach to the management of risk and are closely monitoring the situation with regular assessments of potential scenarios over the short, medium and long term. We increased our focus on the quality of data used to make more data-driven, and therefore more accurate, decisions. This resulted in the development of early warning indicators, prudent risk management measures against our risk appetite, including the monitoring of the credit scorecard and policy rules used to grant credit, and ensuring regular reporting to the Risk Management Committee and the Board. To meet the additional challenges posed by the pandemic, we have adapted our operational processes to provide enhanced support to our customers to ensure minimal disruption in service levels with the increasing use of digital channels. Whilst the health and safety of our employees and stakeholders remain at the forefront of our priorities, we have also been focusing our efforts on minimising the overall impact on our reputation, as well as maintaining the competitiveness of our businesses and the strong relationships we have built with customers over many years. The events of the past months have also served as a catalyst in accelerating our digital initiatives, which have largely benefited our customers. Our digital transformation initiatives are laid out on pages 32 to 33. In doing so, we have strengthened our risk and internal control functions and are now positioned to better manage the above emerging risks. Risk Management Report (continued) R I S K M A N A G E M E N T
RkJQdWJsaXNoZXIy MzQ3MjQ5