Annual Report 2021

067 Corporate Governance Report Miramar Hotel and Investment Company, Limited Annual Report 2021 Risk Categories Key Risks Key Measures in Risk Mitigations Risk Level (Risk Velocity) Risk Momentum Staff Our core businesses are in people intensive industries. Risk related to employee issues, such as health and safety and loss of key staff, would affect the Group’s ability to deliver on its strategies – Heighten staff’s vigilance and take preventive measures during the pandemic – Maintain succession plans for key positions – Regular review on the competitiveness of our compensation and benefit arrangement – Provide development platform and comprehensive trainings to staff – Hygiene & Health Safety Teams have been formed to regularly review and assess the work environment and to ensure compliance with the relevant legal requirements – Standard Operating Procedures for prevention and handling of work injury have been established Medium (Rapid to Very Rapid)  It is generally expected that the human resources costs are on the rebound compared with last year. Moreover, the risks of staff’s health and safety are still in place due to the unstable pandemic situation Legal and Compliance Regulatory uncertainty and/or change of legal and regulatory requirements may lead to non-compliance of local/foreign regulations, leading to reputational damage and financial loss – Actively engage with regulatory bodies and external advisors on any upcoming new legal and regulatory requirements – The requirements are closely monitored by RM&CS and relevant departments – Risk alert of new regulatory and legal requirements to the relevant business management to assess impact and ensure compliance – Encourage staff to attend seminar to update on relevant knowledge – Establish related policies and procedures to provide clear guidelines to staff – Regular independent review by Internal Audit Department to ensure compliance Low to Medium (Slow)  Although there are new legal and regulatory requirements which may increase compliance costs, the impact would not be significant