56 Introduction Customers Social Governance Appendix Environment Sustainability Report 2021 Emerging Risks Despite having a solid risk management framework, ttb’s forward-looking risk management needs to cover the risk landscape that is constantly evolving due to a combination of internal and external factors. For the continued success of our business, it is important to identify these risk factors earlier on to be able to adapt accordingly. Thus, we need to identify and understand relevant internal and external threats that could undermine our profitability and growth. Context of Emerging Risks Impact and Mitigation Cyber risk exposure Cybercrime is evolving rapidly and is now an everyday challenge for the finance industry. Additionally, cybercriminals 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. Thus, espionage, data leaks, system failures, and other digital risks are gaining traction in the finance industry. Digital transformation and newcompetitive environment COVID-19 has put businesses to the test where the organization’s adaptive capacity to operate or transform digitally in the new competitive environment is crucial for survival. This has affected business strategy, customer experience, and market expectations. Regulation plays a key role in setting well-defined and balanced requirements that support business growth and innovation and establishes frameworks or controls to manage risks that stakeholders may be exposed to in the digital environment. • The Bank implements the three lines of defense model to ensures robust oversight of our cyber security capabilities 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 manage threats. • 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 on cyber security during the pandemic. • The Bank is moving towards a digital-centric approach through the implementation of the Digital Transformation program. This encompasses the development of digital branding, agile organization, IT infrastructure and data analytics. • The Bank establishes the Digital Enabled Awards contest to promote the integration of innovation and technology into products and services that best serve customers as well as our operations to be more efficient. • The Bank searches for suitable digital partnerships that will enhance competitive advantage by keeping upwith the rapid pace of the digital era. • The Bank proactively analyzes and identifies the potential risks and opportunities of technological innovations that can help us to better serve value-added solutions to our customers and identify risky customers.
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