Annual Report 2019

Corporate Governance Report 064 Annual Report 2019 Miramar Hotel and Investment Company, Limited Risk Categories Key Risks Key Measures in Risk Mitigations Risk Level (Risk Velocity) Risk Momentum Disaster Events Major disaster events, including extreme weather events, terrorist attack and outbreak of contagious diseases such as Avian Flu, SARS, Ebola, Coronavirus infection would impact on our business operations, inflict damage to assets and company reputation, and reduce our earnings – Emergency Procedures, Business Continuity Management and Crisis Management are in place to minimize impact to business operations during disaster events – Risk indicators are monitored on contagious diseases and preventive measures are carried out to minimize impact from disaster events – Drills on business continuity are conducted on an annual basis to ensure effectiveness – Comprehensive insurance coverages are in place for property assets, business interruption and third-party liabilities Medium to High (Rapid to Very Rapid)  New infectious diseases have emerged which post a threat to public health and significantly affecting operations and business performance Tenant and Customer Loss of income due to loss of major tenants, customer dissatisfaction on our provision of goods/services, etc. Changes in customer/ guest spending and dining propensity, competition from online shopping, and decline in spending on luxury goods and out-dining – Continuously monitor guest feedbacks for further improvement – Enhance marketing and promotion to attract customers – Active engagement with current tenants/guests as part of marketing strategies – Keep continuously updated on market trends and make corresponding revisions to strategy Medium to High (Rapid)  The challenge of changes in spending and dining habits of customer/guest which directly affect our retail tenants and indirectly affect our rental business performance, especially during the social unrest and epidemic crisis of coronavirus infection. The risk is expected to increase