Combating cybersecurity Defining the issue: Cybersecurity is a top concern for our business, given the rising threat of breaches worldwide. Factors like digitalisation, remote work and global networks increase our system vulnerability. PPS’s response: We rigorously update our cybersecurity strategy, centrally manage development and invest in top-tier technology to enhance member experience and protect our business. With the ever-expanding cyber threat landscape, we have significantly bolstered our IT security posture. Continuous monitoring of risk and trust levels, coupled with regular staff training, ensures best-practice cybersecurity. We collaborate with global providers and employ automated responses to mitigate evolving risks. Routine stress tests fortify the stability and security of our IT infrastructure. Fostering employee satisfaction Defining the issue: In a country characterised by a pervasive shortage of skills, the ability to attract, develop and retain talent is vital. We also believe that how we treat our employees ultimately determines how they treat our members. Managing employee satisfaction is, therefore, an especially important material matter for the business. PPS’s response: Our full response to this challenge is outlined in the Human Capital section on our website. Among other initiatives, we conduct an annual employee satisfaction survey to measure all aspects of employee well-being and development. Engagement in the survey is consistently high and is indicative of our commitment to our Employee Value Proposition – the set of benefits and rewards we offer to attract and retain employees. Dealing with regulatory issues Defining the issue: As a financial institution, we comply with all laws and regulations governing the industry. There should, however, be a balance between protecting customers and supporting the stability of the financial system and dealing with onerous, voluminous legislative requirements, which are constantly changing. PPS’s response: We have established robust processes to evaluate PPS Group’s risks and determine capital needs. This informs our solvency planning, ensuring readiness for various scenarios. Our annual Own Risk and Solvency Assessment, approved by the Board, is submitted to regulators. We actively engage with government and regulators, providing feedback on legislation and collaborating on solutions. Continuously monitoring regulatory changes, we promptly adapt to ensure compliance and effectiveness. Managing the energy crisis Defining the issue: Eskom’s inability to meet the country’s energy requirements significantly impacts all businesses. The slow approval of the mixed-energy policy also delays alternatives to Eskom being implemented. The overall energy situation in the country is disruptive and costly to all businesses in South Africa, including PPS. PPS’s response: We secured additional energy supply at our head office by installing solar panels during 2023 to augment the Eskom supply shortfall. A third of our electricity usage at head office is now provided by this facility, reducing our reliance on Eskom. We continue to look to sustainable energy alternatives to decrease our dependency on diesel generators across all properties. MATERIAL MATTERS AND RISK MANAGEMENT 48 Material matters and risk management
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