BAT(BTI)2025-02-14 15:09Cyber Security Risks - The Group acknowledges significant risks from cyber security threats that could impact its business operations, reputation, and financial condition [3518]. - Cyber security is integrated into the Group's overall risk management systems, with processes in place to identify, assess, and manage material risks [3519]. - The Group's cyber security team actively monitors the evolving threat landscape and conducts regular assessments to identify vulnerabilities [3527]. - Any disruption to the Group's information and digital technology systems could lead to financial, legal, and reputational impacts [3530]. - The Group has implemented various technical and organizational security measures to protect the confidentiality, integrity, and availability of its systems and data [3519]. - Personal data breaches could result in legal and reputational issues, potentially leading to a loss of sales and market share [3531]. - The Group's cyber security strategy includes regular training for employees and contractors on best practices and adherence to security standards [3519]. - The Audit Committee reviews the Group's risk register, including cyber security risks, twice annually to ensure effective risk management [3524]. - The Group engages with external assessors to support its cyber security risk assessment and management processes [3519]. - The development and implementation of AI in the Group's products may increase exposure to cyber threats, necessitating enhanced risk management [3529]. Regulatory Compliance Risks - The Group faces risks related to insufficient product stewardship and compliance with product regulations, particularly concerning the Tobacco and Related Products Directive (TPD2) [3532]. - There is uncertainty over product classifications and advertising restrictions, especially for the emerging category of New Categories, which has rapidly increased in complexity [3532]. - Continuous changes in regulations may lead to misinterpretation or non-compliance, resulting in enforcement actions from regulators [3532]. - Financial costs from regulatory enforcement actions could include penalties, product recalls, and litigation costs, impacting the Group's reputation and goodwill [3532]. - Some governments are seeking to ban novel tobacco products and products containing nicotine, affecting market expansion efforts [3532]. - In markets where sales are currently permitted, there are ongoing discussions about potential bans or restrictions on certain flavors of New Categories [3532].