KEY RISKS TO LOOK OUT FOR IN THE CEMENT SECTOR IN 2025

HIGH-PRIORITY RISKS (Potential Impact: High, Likelihood: High)

1. Energy and Fuel Supply Risks: Disruptions in energy and fuel supply impacting production.
– Mitigant: Diversify energy sources, invest in renewable energy, and develop contingency plans.
2. Regulatory Uncertainty: Uncertainty surrounding regulatory frameworks, taxes, and trade policies.
– Mitigant: Engage with government officials, conduct thorough risk assessments, and develop contingency plans.
3. Competition and Market Risks: Increased competition and market fluctuations impacting revenue.
– Mitigant: Develop competitive strategies, enhance market intelligence, and diversify products.
4. Security Threats: Security threats from militant groups, kidnappings, and banditry.
– Mitigant: Enhance security measures, engage with government officials, and conduct regular risk assessments.

MODERATE-PRIORITY RISKS (Potential Impact: High, Likelihood: High)

1. Raw Materials Supply Risks: Disruptions in raw materials supply impacting production.
– Mitigant: Develop contingency plans, engage with suppliers, and invest in alternative raw materials.
2. Infrastructure Challenges: Inadequate infrastructure, including transportation and logistics.
– Mitigant: Invest in infrastructure development, engage with government officials, and develop contingency plans.
3. Environmental Risks: Environmental degradation, pollution, and community resistance.
– Mitigant: Develop environmental management plans, invest in rehabilitation and reclamation, and engage with local communities.
4. Technical Risks: Technical challenges impacting production and quality.
– Mitigant: Invest in research and development, develop contingency plans, and enhance operational efficiency.

LOW-PRIORITY RISKS (Potential Impact: High, Likelihood: High)

1. Cybersecurity Risks: Cybersecurity threats impacting operational technology and data.
– Mitigant: Implement robust cybersecurity measures, conduct regular vulnerability assessments, and enhance employee training.
2. Artificial Intelligence (AI) and Machine Learning (ML) Risks: Risks associated with AI and ML adoption.
– Mitigant: Develop AI and ML governance frameworks, conduct regular system audits, and enhance employee training.

SPECIFIC RISKS (Potential Impact: High, Likelihood: High)

1. Economic Instability: Economic instability, impacting investment and revenue.
– Mitigant: Develop contingency plans, engage with government officials, and enhance financial management.
2. Infrastructure Deficits: Inadequate infrastructure, including transportation and logistics.
– Mitigant: Invest in infrastructure development, engage with government officials, and develop contingency plans.
3. Bureaucratic Delays: Bureaucratic delays impacting licensing and permitting.
– Mitigant: Engage with government officials, develop contingency plans, and enhance stakeholder management