Page 86 - BAM ONE REPORT 2564 (ENGLISH VERSION)

84 Part 1
Business Operation and Performance

and outsource staff by requiring them to conduct the rapid antigen testing on every Monday before coming to the
office and also screening of advisors, guest speakers, service providers or any outsiders having to perform some tasks
in the building by requiring them to show a negative antigen testing result (not infected) of not over one week, etc.
The aim is to ensure that the Company’s significant transactions could be conducted uninterruptedly.

Cyber risk
Today, digital technology has played a very crucial role in people’s daily lives and works. This, coupled with the
COVID-19 outbreak, has led the way of life and business operation to change in leaps and bounds. For example, some
business processes, which were earlier performed manually, have now been digitized. Risk from cyber threat is considered
critical and could affect the Company’s operation, especially its network system and core operating system where
personal data are stored. Any personal data breach can affect the Company’s operation and reputation. Giving importance
to this problem, the Company has planned for and invested in development of its operating system to support new
technologies and installed devices and software to enhance the IT security and cope with the cyber risk, as well as
drawn up plans to handle the problem and create awareness among the employees on a regular basis. Also, the
Company has redesigned its servicing and business processes with enhanced cyber security in the case where
the employees are required to work from home under the government’s measures and must connect to the Company’s
IT system in order to protect against cyber thieves or attacks. The Company has established guidelines on prevention
of cyber threat and given importance to IT risk based on three key principles: 1) confidentiality, 2) integrity, and
3) availability, while striving for the protection of data and customer interest.

Financial Risks
Liquidity risk
Since its business is capital intensive, the Company needs to always have adequate liquidity. A plunge into
liquidity crunch might erode the confidence of its counterparties and stakeholders such as lenders and financial
institutions that sell their NPLs and NPAs to the Company. Factors which could adversely affect its liquidity include,
among others, changes in macro economy, money market and public sector policies that are unfavorable to its business
operation and ability to procure loans with commercially acceptable terms and conditions, stricter supervision by the
concerned regulatory bodies, and failure to collect payments from its NPL and NPA management business sufficiently
or according to the established strategy or goal.

The Company usually issues promissory notes to pay for the purchased NPLs or NPAs. Any payment with a high
value for such issued debt instruments and loans that become due may sometimes affect its liquidity and also limit
and reduce its ability to additionally purchase a large amount of NPLs and NPAs.

Furthermore, under some of the Company’s loan agreements, the lenders are entitled to adjust the interest
rates in the case where FIDF’s shareholding is lower than 40.0 percent. Currently, FIDF holds 45.8 percent of the total
issued and paid-up shares of the Company (data as of April 27, 2021 which was the latest register book closing date of
the Company). As at December 31, 2021, the total amount of the outstanding loans under such loan agreements was
approximately Baht 18,264.60 million. An upward adjustment of the interest rates under those loan agreements is likely
to have a significant adverse impact on the Company’s liquidity, financial position, and performance.