Page 78 - CJ 2019 INTEGRATED REPORT

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Risks Relating to our Businesses and Industry
Investment and Financial Risks 8 Financial stability
RISK MANAGEMENT
All All Group companies companies operate independently without undue reliance on corporate help for fifinancing All All companies companies within the Group are expected to be self-fifinanced Failure to to secure fifinancial stability
is due to:
• Economic recession and unforeseen economic shock • Poor governance principles and strategies • Mismatch in in in the the leveraging of debt between the the holding company and subsidiaries • Absence of a a dividend pay-out policy • Erroneous fifinancial reporting and breakdown of internal controls A balanced portfolio mix is is critical for the Group to average its risk exposure Our inability to to maintain an optimal mix of investment is due to:
• A poor investment strategy • Unbalanced weightage of specifific business activities • Risk appetite not conducive to growth and diversifification • Corporate culture not conducive for innovation and business incubators • Long time to market • Lack of foresight 9 Portfolio mix Industry
(Sector) Risks Description & Risk Context
Telecom & Media 10 Technology
Technologies are evolving rapidly giving rise to to to new consumption patterns business models and competitors CJ needs to to to to to to ensure that it it is suffifficiently agile to to to to to respond to to to to to new customer expectations CJ could potentially fail to to to adapt to to to these rapid changes and evolutions in technology due to:
• Our inability to anticipate threats • Our inadequate and/or limited knowledge of the industry • The emergence and presence of disruptive players • Demographic shifts in our target customers and the new generation • Our inability to attract the right talent • Our inability to to to leverage technological strengths to to to improve internal processes and customer interfaces BUSINESS PORTFOLIO MANAGEMENT
MANAGEMENT
FINANCIAL RISK MANAGEMENT
MANAGEMENT
SUSTAINABILITY FOCUS
OPERATIONAL EFFICIENCY
CURRIMJEE JEEWANJEE AND COMPANY LIMITED