STRATEGIC REPORT PRINCIPAL RISK SUMMARY CONTINUED S OPERATIONAL RISKS TR A Programme delivery Achieving financial and Cyber security Supply chain TE cost-reduction targets and IT resilience disruption G I C R Failure to implement major The Group’s size and low-volume Breach of cyber security could result Supply chain disruption could result in R I S programmes on time, within demand-led strategy may inhibit in a system outage, impacting core production stoppages, delays, quality E K budget and to the right technical its ability to deliver targeted cost operations and / or result in a major issues and increased costs. P DE O specification and quality could reductions or work within budget data loss leading to reputational R S jeopardise delivery of our strategy constraints while delivering the damage and financial loss. T C and have significant adverse financial planned vehicle programme. R and reputational consequences. I P T G I O ON Risk movement Risk appetite Risk movement Risk appetite Risk movement Risk appetite Risk movement Risk appetite VE MODERATE LOW LOW LOW R Link to strategy Link to strategy Link to strategy Link to strategy NAN 2   3   4   2   3   4   1   3   C E P – InsufÏcient funds to support – High levels of complexity across – Cyber attack resulting in disruption – Suppliers may be unable to meet O current programme investment car lines can drive increased to operational services, possible delivery schedules due to being in T requirements engineering requirements with data loss and related business financial distress F E I N – Inability to manage third-party associated increased resource and outages – Unforeseen supplier failures, or NAN T delivery in line with programme cash requirements – Legacy systems reaching end of life disruption, can lead to production I A timelines and milestones – Inflationary pressure on key may no longer be supported and stoppages caused by delays in C L I – Failure to adhere to the “Mission” input costs (e.g., raw materials, become more susceptible to breach sourcing parts IAL M programme delivery governance commodities, energy, labour) – InsufÏcient investment in – Raw material shortages (including S P A framework could result in delayed makes achievement of targeted systems and resource leads to semi-conductors) due to increased T C launch of vehicles or unforeseen reductions more challenging limited protection with critical demand and global supply chain A T O quality issues – Instability in the supply base due vulnerabilities not being addressed issues could impact Aston Martin’s T E N B – Delays in new Enterprise Resource to economic volatility may reduce in a timely manner ability to meet planned production M Planning (“ERP”) system go-live opportunities to identify cost volumes E U dates could expose the Group savings – Disruption caused by ongoing N T S to increased risk of IT failure and – Ultra-luxury positioning demands global conflicts (e.g. Russia / S I N resultant disruption to production the necessary marketing spend Ukraine, Gaza / Israel, Red Sea E and engineering activities to generate brand and product activity) can result in longer lead S S awareness to build desirability and times and increased freight costs F create future demand U – Increased logistics costs associated R T with disruption due to conflict (e.g. H E Red Sea shipping route disruption) R can lead to unforseen inflationary INF pressures OR M A T I ON R – Deployment of an established – Cross functional team – Project continuing to deliver a – Cross functional weekly risk I S programme delivery transformation activity with agreed new ERP system through 2023 to reviews with key departments to K methodology and regular Product cost target process and regular transition away from end-of-life identify current supply issues and M Committee status reporting and CEO-led cost reviews legacy systems and drive efÏciency actions to resolve ITI oversight – Development of commodity within the IT infrastructure – Supplier scorecards and G – Restructure of business to Project strategy with strategic suppliers to – Enhanced IT general controls for performance metrics developed to A Team focus with a Team Leader drive resilience and cost efÏciency access management, network drive improvement and encourage TI responsible for financials/quality/ – Synergies from leveraging common access controls, remote access (e.g., best practice O timing commodity strategies across multi-factor authentication) and – Internal Customs team established N – Enhanced focus on R&D financial platforms password management to manage and mitigate forecasting for all capital – Increased focus on supply chain – 24/7 vulnerability monitoring using procedural/policy changes expenditure risk analysis and proactive risk security tools including Darktrace, – Periodic due diligence performed – Addition of innovation team management SentinelOne and cyber incident on key suppliers including Dun & to create new technologies to – Targeted marketing activity with response procedures Bradstreet financial health checks an appropriate Technology/ support from key external agencies – Significant investment in in-house – Supplier strategy implemented to Manufacturing Readiness Level to ensure the necessary return Information Security team to develop strategic and sustainable – New model pilot production line on investment is obtained from mature cyber security control partnerships to improve supply established in Gaydon to facilitate marketing spend framework chain resilience new product development – Budget and business planning – Benchmarking of cyber security – Supply chain and logistics – Establishment of New Model activity reassessed in consideration controls against the National transformation project Quality and Quality Business of current inflationary headwinds Institute of Standards & Technology commenced Planning teams to improve quality (“NIST”) governance framework management activity LEGEND 1 Brand  2 Product innovation  3 Sustainability  4 Team ASTON MARTIN LAGONDA ANNUAL REPORT AND ACCOUNTS 2023 68