2019 Integrated Report

RISK MITIGATING ACTIONS 1. Slow economic growth   Develop our brand   Group product innovations and holistic solutions   Build on adviser value proposition   Data analytics to construct big data relationships 2. Membership growth   Member experience initiatives   Establish Wealth Advisory business   Profit-Share Account benefits 3. Market risk and volatile investment return   Long-term investment horizon   Balanced portfolios with international exposure   Multiple asset managers 4. Pandemic   Frequent monitoring by the crisis committee as situation evolves   Business Continuity Plan   Implement and update PPS Group Epidemic Management Policy   Regular communication to employees   Adherence to National Institute for Communicable Diseases (NICD) guidelines 5. Sustainability   Secure IT Platforms   Strategic opportunities   Exploit efficiencies   Legislative compliance   Responsible Governance   Keep abreast of external events impacting our members The Group’s process of identifying and managing risks typically includes and facilitates:   discussions on how emerging risk scenarios might impact on business strategy;   consideration of key trends and developments in the insurance and wider financial services industry and the ways in which these could impact on PPS in the future; and   reviewing the emerging risks being experienced by other insurers and/or similar financial services institutions. In order to manage risk effectively, PPS continuously tracks many different risks on its various risk dashboards and responds to emerging risks as soon as they are identified. The following are the material risks for the group: MATERIAL MATTERS AND RISK MANAGEMENT | 51