MATERIAL MATTERS AND RISK MANAGEMENT MATERIAL MATTERS Material matters are issues that can either directly or indirectly create, preserve or erode financial, economic, environmental and/or social value for the Group and its stakeholders. When determining and prioritising material matters and our risk management responses to them, we consider both internal and external factors. RISK MANAGEMENT At PPS, our risk approach aligns with our mutuality ethos and ethical operational principles, ensuring compliance with legislative requirements. We integrate risk management across all levels of our activities, identifying potential impacts through various methods like monitoring trends and analysing scenarios. Risks are evaluated based on likelihood, consequence and existing controls, aligning with our risk appetite. We maintain risk registers to track foreseeable and emerging risks, with mitigation plans for each. Our process includes discussions on emerging scenarios, monitoring industry trends and regular reviews of risks faced by similar institutions. Specific risk management strategies are articulated for matters deemed material to the Group and stakeholders. Operating in a low-growth economy Defining the issue: PPS operates in a stagnant economic environment influenced by various global and local factors, including the COVID-19 aftermath, geopolitical tensions and domestic challenges like loadshedding and unemployment. This necessitates constant innovation to thrive amid adversity. Our mutual model provides vital support for professionals, helping them maintain financial resilience amid strains, thus reducing lapses. Existing members may adjust premiums or solutions to cope with budget constraints. PPS’s response: We prioritise long-term wealth creation for our members, emphasising mutuality and lifetime value. Our multimanager team employs diverse asset managers and strategies to manage risk effectively and position portfolios for market conditions. This strategy aims for optimal results over the medium to long term, while retention initiatives and cost management help mitigate controllable losses. Additionally, we focus on attracting younger graduates and expanding into new markets to drive growth. Sustaining stakeholder value Defining the issue: PPS’s purpose is to create sustainable financial and lifestyle value for members and their families throughout their working lives as well as after retirement. PPS’s response: We uphold stakeholder value through our ethos of mutuality, Group values, legal compliance and adherence to King IV™ governance principles. Operating for the collective benefit of our members. Our skilled advisers streamline financial planning to evolve solutions that meet members’ changing needs. With diversified investments, we ensure consistent returns for our members. 46 Material matters and risk management
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