Risk Management Report (continued) Looking Forward and Emerging Risks As we look ahead to 2025, we are committed to further enhancing our risk management practices. We aim to carefully balance opportunities for growth and expansion with a robust risk culture across the Group. We recognise the importance of staying vigilant to the emergence of new risks and will continue to proactively identify, monitor, and assess these evolving challenges. These include, but are not limited to: Our Risk Management Framework Cim Finance’s Enterprise Risk Management (ERM) framework provides a structured and consistent approach to identifying, assessing, managing, and monitoring risks across its various lines of business. By embedding the ERM framework into every facet of the organisation, we ensure that the Group is well-positioned to respond to both opportunities and challenges. The Group is exposed to a range of risks with the potential to impact its financial performance and operational stability. Risk governance Recognising that good effective risk management requires a strong governance foundation, the Group implemented a robust risk governance structure based on the three lines model, previously referred to as ‘three lines of defence model’. This approach facilitates the identification and escalation of risks, while providing assurance to the Board. Our governance structure is supported by an active and engaged Board of Directors and a dedicated Risk Management team, which operates independently of the Business Units. The Chief Risk Officer reports directly to the Chairperson of the Risk Management Committee. Technology – evolving cyber-risks and AI adoption and threats Talent and skills shortage Changes in the regulatory landscape Economic and geopolitical risks Climate change and environment risk - including new challenges associated with anticipated new regulations Readiness plans are developed and implemented through targeted initiatives, ensuring the Group is equipped to not only address current risks, but also to adapt to emerging challenges and opportunities. 78
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