Emerging Risks Integration Integration inevitably brings with it significant changes to many aspects of business. Shifts in the direction of businesses and ways of working can cause unease and confusion among workforces. The bank, therefore, needs to focus on the smooth transition and integration of employees as much as the business aspects. During 2020, the bank aligned the policies and procedures of the two banks, established a new corporate culture called ‘I CARE’ that changes the way we work, and captured quick win synergies. This integration proceeded as planned despite the disruptions caused by COVID-19 and is expected to be completed by July 2021 (EBT: entire business transfer). The bank has put in place key measures and a medium-term strategic direction to ensure business growth during the post-EBT/COVID-19 recovery, with a view to becoming the recommended bank of choice by our customers. Cyber resilience Cybercrime is evolving rapidly and is now an everyday challenge for the finance industry. In addition, cyber criminals see crisis events such as COVID-19 as an opportunity to launch more attacks in a variety of forms, with email, web and SMS phishing being the top threats. To overcome these, we operate a 3 lines of defense model that ensures robust oversight of our cyber securitycapabilities and priorities. The bank invests in IT infrastructure in a variety of forms to establish a reliable system and technical controls to help prevent, detect and react to these threats. Also, the bank extensively shares and collaborates with the cyber threat intelligence community to combat attacks. The bank also has a framework for remote working (working from home) and regularly communicates with employees and customers to build awareness about cyber security during the pandemic. Technological innovations While innovation and digitization provide financial institutions with new growth opportunities, banks can be impacted by a lack of preparation for new technologies and financial innovation. New players such as startups, fintech, neobanks and neoinsurers are contributing to a new competitive landscape that in turn is generating fresh ways of collaborating and encouraging further innovations. Moreover, despite themany advancements intermsof technological innovations, regulatory frameworks and guidance are still much needed both to prevent ethical dilemmas and to verify the effectiveness of these models. The bank is moving towards a digital centric approach through the implementation of a Digital Transformation program. This encompasses the development of digital branding, agile organization, IT infrastructure and data analytics, as well as the search for suitable digital partnerships that will enhance competitive advantage by keeping up with the rapid pace of the digital era. TMB proactively analyzes and identifies the potential risks and opportunities of technological innovations, such asmachine learning, that can help us to better serve value-added solutions to our customers and identify risky customers. Financial stability Black swan events such as the COVID-19 pandemic can have a huge impact on businesses across the world. To withstand such events, the bank must have financial resilience to operate without business disruption despite the economics strains. Since the 2008 financial crisis, the bank has maintained strong liquidity and capital so that it can operate as normal and absorb volatility and unexpected events in the near term. Going forward, the bank must prepare and closely monitor its readiness for black swan events to face the dual challenges of sustaining the flow of finance and preserving financial resilience. At the same time, the bank will continue to assist customers in need of help while navigating moral hazards andmanaging theoverall asset qualityof thebank. 45 I n t r odu c t i o n Cu s t ome r s En v i r o nme n t a l & So c i a l I mp a c t s Pe op l e Go v e r n a n c e App e nd i x Su s t a i n a b i l i t y Re po r t 2 0 2 0
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