Annual Report 2019

Corporate Governance Report 060 Annual Report 2019 Miramar Hotel and Investment Company, Limited Highlights of key Risk Management Activities Risk Management Culture The Group believes that an ingrained risk culture is core to effective risk management. Key risk management activities such as business continuity management (“BCM”) and crisis management are introduced in the orientation program for new joiners, to promote awareness of possible risks and its mitigation measures in their daily operations. In addition, annual risk management workshops have been regularly conducted to facilitate management and key team members to discuss, identify and assess risks in their operations. We integrate the risk management activities into the daily operations and regularly review and test the effectiveness of the implemented mitigation measures. Results of a series of drills pursuant to the annual BCM plan were discussed, evaluated and adjusted to ensure the plan can eventually be executed in an efficient and effective manner. Monitoring on Key Risks and High Velocity Risk Events To identify key risks to the Group, each possible risk event is assessed and prioritized based on its likelihood and impact. Besides, we have also adopted and implemented assessment of “Risk Velocity” to identify risk events that would rapidly affect the Group. Accordingly, the Group could establish more effective monitoring and control measures based on the nature of different risk events. The Group has established key risk indicators to monitor key risks to the Group. Risk alerts based on periodic analysis on the risk indicators would be provided to business management so that they could administer corresponding responses in a timely manner. In addition, risk events identified with high velocity, such as events involving health and safety, media, system failure and natural disasters, would be controlled and monitored by embedding risk mitigation measures into day-to-day operations. The Group monitors such risk events on a daily basis and takes immediate actions to minimize impact to the Group. Risk Identification Risk Monitoring & Risk Treatment Escalation Procedures Corporate Key Risks High Velocity Risks Key Risk Indicators and Risk Alerts Closely Monitoring and Immediate Actions Crisis Management Committee Crisis Crisis Management No system can perfectly manage all risks. Crisis events may occur in the next minute and damage could be catastrophic. The Group has established a crisis management team composed of senior management and key employees in various business and functional departments, which proved to be highly effective. Work scopes of the crisis management team have been further enhanced to include development of mitigation measures at different stages of prevention, incident handling and post-event to minimize the impact on the Group. As central commander, the team responds expeditiously to crisis events, in particular amidst the recent social unrest in Hong Kong where the team played an important role. Emergency plans have been designed at an early stage catering to different conceived scenarios and were correspondingly modified on the spot in view of changing situations. Training has been provided to the relevant frontline staff to ensure that the responses to the crisis events are effective and efficient.