SBN HOLDINGS LIMITED Annual Report 2022
OUR VALUE CREATION STORY
8
Our material matters
The issues that are material to our strategy are those that
have a significant impact on our ability to create enterprise
value in the short, medium and long term.
2022 material
issues
We measure our strategic
progress against our six
value drivers and have
identified the material
issues that are most likely
to have an impact on
them and therefore our
ability to achieve our
strategic aspirations.
Our materiality assessment process
We use the concept of double materiality which considers both internal and external factors to
ensure that we have considered how material issues may impact internally on our business,
across our six value drivers, and how our business materially impacts externally on society.
This approach is crucial to ensure we deliver both financial outcomes and positive SEE impacts.
To identify and adequately interrogate our material issues, we consider:
■ Our key impacts
on society and
the environment
■The expectations
and concerns of
our stakeholders
regarding our
impacts
■The economic,
social and
environmental
context in which
we operate
■The risks and
opportunities
facing our
business, as
identified through
our enterprise
risk process.
Our material issues
Based on our understanding of our strategic
aspirations and stakeholder priorities, our
material issues for 2022 are as follows:
Our strategic
priorities
Transform
client experience
000
Execute with
excellence
Drive sustainable
growth and value
+
+
Value drivers
Material issues
SBN HOLDINGS LIMITED
Annual report 2022
Our top enterprise risks
Our top enterprise risk are the issues that could have a material impact on
our ability to achieve our strategic objectives. They are risks from all
categories in our risk universe and can be prevalent or emerging risks.
The top enterprise risks are identified though a robust process that includes content gathering from internal and external
sources, followed by detailed analysis and curation of the information and then prioritisation and reflect the group's view of
top risks for the medium-term. No significant changes to the top enterprise risks have been identified and, while all risks are
pertinent and managed as part of our operations, we prioritise these for extra focus.
Top medium-term
enterprise risks
Unlikely
Rare
Severe
Possible
Major
Moderate
11
10
13
Likely
6
LEGEND
Strategic risk
Non-financial risk
Client focus -
issues material to our clients
Employee engagement
issues material to our people
-
Risk and conduct -
issues that may impact our
governance frameworks and
value chain
Operational excellence
issues that may impact our
systems and processes
Financial outcome -
issues that are material to our
providers of capital
SEE impact -
issues that may impact our
community
■ Customer experience
■Competitiveness in face of new
forms of competition and changing
client expectations
■Fair outcomes for clients
■ Employee engagement, health and
wellbeing
■ Workforce diversity
■ Digital skills
■Culture of responsible banking
■Integration of ESG risk
management, with a focus on
climate risk and opportunity
■Information security, data privacy,
cybersecurity
■Third-party risk as we transform to a
platform and ecosystem business
■Reliability of digital transaction
channels
■ Delivering sustainable value to
shareholders
■ Delivery of positive SEE impacts,
with a focus on sustainable finance
solutions and supporting a just
transition
Our top enterprise risks
Fitness to execute
our strategy
Certain
Lack of appropriate infrastructure in the group may hinder the
execution of the platform organisation strategy, delay or prevent the
transformation of the way we operate and increase operating and
governance costs. Infrastructure includes funding, organisational
processes, technology and leadership and operating skills.
Drive sustainable growth and value
Impact
■Duplicated functions and
additional costs
■Misalignment of deliverables
and agreed objectives
■Decision referrals and
opportunity losses
■Repeat failures due to poor
consequence management
■Impact of unrealised cost
savings on a platform
organisation
■ Credibility loss due to failure
to achieve the strategy.
Neutral
Treatment
■ Workstreams and
skilled teams
appointed to manage
strategic
transformation
■ Transformation of non-
digital leaders
■Review of decision-
making processes and
mandates
■Data collection and
analysis of planned
cost reduction.
Competitiveness of our
customer value proposition
New customer solutions may offer a mediocre value proposition
that is generic and easily substitutable due to poor research and
development, resulting in loss of market share.
Transform client experience | Execute with excellence
Impact
■Loss of brand loyalty and
client retention
■Loss of market share and
revenue
Costly innovation that
does not yield anticipated
outcomes
■Investor concerns about
our sustainability.
Treatment
Neutral
■ Propositions carefully
tailored to support
customer journeys
■Design and scale
competitive solutions
for client needs
Ongoing relevant
investor and stakeholder
communications.
Strategic priority
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