CFSL Integrated Report 2025

91

Introduction

Group Overview

Leadership

Strategy & Performance

Risk Management Report (Continued)

Other industry exposures, other than households, are well-diversified as shown below:

Credit Concentration Risk

1 000 800 600 400 200 – MUR M

42.6%

39.6%

24.3%24.9%

9.5% 9.6% 8.9% 11.7% 7.4%

6.7% 7.3% 7.4%

Wholesale and Retail Trade

Construction

Rental and Leasing

Transport

Professional, Scientific and Technical Activities

Others

September 2024

September 2025

Looking Forward to Emerging Risks As the financial services landscape evolves, Cim Finance remains focused on identifying and preparing for emerging risks that could impact our operations and strategic objectives. The diagram below outlines key risk areas that are expected to shape our operating environment in 2026 and beyond. These risks require proactive monitoring, adaptive strategies, and integration into our enterprise risk framework.

The rapid evolution of Artificial Intelligence is introducing complex risks, including autonomous cyberattacks, deep fakes, and biased decision-making in credit. RESPONSE: Cim Finance has strengthened governance around AI use, ensuring its ethical deployment across operations.

AI-DRIVEN AMPLIFICATION

Increased reliance on external vendors and cloud platforms heightens exposure to third-party failures and compliance gaps. RESPONSE: Enhanced due diligence and continuous monitoring of vendor risk.

THIRD PARTY RISK

Certain sectors/areas are facing growing shortage of skilled professionals. RESPONSE: Prioritising workforce planning and upskilling initiatives. Our graduate programme plays a vital role in building future-ready capabilities.

TALENT AND SKILLS SHORTAGE

An evolving regulatory landscape requires constant monitoring and proactivity. RESPONSE: Cim Finance continues to integrate these developments into its risk framework and practices to ensure continued compliance, resilience, and strategic alignment.

CHANGES IN THE REGULATORY LANDSCAPE

Beyond AI-driven threats, cyber risks such as phishing, ransomware, API vulnerabilities and supply chain attacks remain key concerns. RESPONSE: Cim Finance continues to invest in cybersecurity tools, strengthening endpoint protection, third-party oversight, conducting regular vulnerability and penetration testing and enhancing incident response capabilities to safeguard operations.

TECHNOLOGY - EVOLVING CYBER RISKS