S U S T A I N A B I L I T Y S T A T E M E N T A N N U A L R E P O R T 2 0 2 1 1 0 7 Four main risk categories are assessed on a quarterly basis: Financial, Operational, Strategic and Compliance Risks. Within these broad risk categories, emerging and long-term risks are identified and tracked. Long-term risks identified Category Emerging Risks Description Impact Mitigation Actions Strategy Regulatory Risk Change in regulatory structure Regulatory changes that could change the business strategy Continuous monitoring of regulatory changes Operational Human Capital Risk Succession planning and succession management Business continuity Identification of successors Financial Financial Risk Financial sustainability Business continuity Financial analysis on any business decisions Business Continuity Management Business Continuity Management, which entails having a Business Continuity Plan (BCP), is a crucial component of our risk assessment as it involves the assessment of key functions – ie our people, processes and systems – utilising the Business Impact Analysis (BIA) framework. Through BIA, we are able to ascertain the severity, urgency and impact of any failure in the Group’s function(s). Heads of all key function areas proactively review the BCP on a half-yearly basis. In 2021, in response to extreme climate events in Thailand and the Philippines, we undertook BCP exercises at Bangkok’s Don Mueang Airport and the Cebu, Puerto Princesa and Tacloban airports in the Philippines. AirAsia Thailand Flood Scenario Readiness Simulation at Don Mueang (DMK) Airport, Bangkok No. Test Activity Test Location Departments Test Date Test Findings 1 Planned flood scenario readiness simulation Don Mueang (DMK) All Operations departments 12 October 2021 • All departments confident of the level of handling of the floods • Reactive approach is in line with the available response plan for diversion and mobilisation of aircraft/fleet 2 Unplanned Flight Operations mobilisation (recurrent from 2019 exercise) Virtual meet (Google) Flight Operations 21 December 2021 • Partial assets were unserviceable due to water damage • Ability to carry out operations as per businessas-usual with remaining equipment • No adverse impact on operations as rostering covered work from home during the event Description Training Number of Attendees Risk awareness training for employees 650 To educate personnel on how to identify and assess risk Risk Awareness 650 On how to use the risk management system RedRadar System
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