The Company has established a risk management policy which defines the framework and process for managing its risks. The Company has adopted the COSO Enterprise Risk Management framework to identify and evaluate risks in all the business activities of the Company for developing the risk management plan in order to manage the risks.

The Risk Management Committee is appointed by the Board of Directors and is entrusted with duties to determine the policy, frameworks including the monitoring, reviewing, and providing opinions and recommendations on enterprise risk management. In addition, the Risk Management Committee also considers the risk factors and determined ways to mitigate these risks to the acceptable levels. All departments in the Company are the risk owners and responsible for monitoring and managing the risks.

Risk culture is a key element of the Company’s risk management framework. The Company has strived to promote risk culture throughout the organization and expects employees to be aware of the risks inherent in their day-to-day operational activities and take responsibility for managing them properly. Moreover, every employee is encouraged to have the right attitude and behavior towards risk management in order to create a good risk culture, which is underpinned by the following measures.

• To determine the risk management policy, objectives, risk management framework and risk management guidelines;
• To continuously implement and monitor the progress of risk management at all levels of the Board of Directors, executives and operational level;
• To continuously communicate and promote the understanding of risk management via several channels such as publication board and training.

In 2024, the company will raise awareness and understanding of risk management through training at the head office by providing a compulsory online course for employees. The training will be held throughout July 2024.

Strategic Risk

Risk of Deflation and Competitive Market Conditions

The risks arising from economic contraction and a highly competitive market environment amidst an economic slowdown are due to several risk factors, such as rising household debt that does not generate income. This has led financial institutions to tighten their approval of new housing loans, while interest rates remain high. Geopolitical issues and government policies that have yet to effectively address economic challenges are forcing businesses to adapt to the current situation. It is expected that the market will continue to slow down in 2025, with a further decline in growth rates. As a result, developers are delaying launches, especially for low-cost houses under 10 million Baht, while premium homes continue to experience growth.

The premium housing market, despite challenges from the economic situation, continues to grow as developers adapt to meet the demands of high-purchasing-power consumers. Single detached homes priced above 20 million baht have an increasing trend, as land prices are high and becoming more scarce.

In the final quarter of this year, real estate still faces pressure from multiple risk factors, causing the number of newly launched residential projects in Bangkok and the surrounding areas to decrease in 2024. Despite government measures to stimulate the real estate market for homes priced below 7 million baht, developers and consumers must remain cautious due to the uncertainty of the economic conditions.

The economic situation has made sales promotions and marketing efforts more challenging. Rising household debt, stricter lending policies from financial institutions, and the halt of LTV (Loan-to-Value) relaxation measures make it harder for potential buyers to obtain loans, or result in lower loan amounts. Additionally, developers are facing higher interest rates on their costs, increased labor costs, and rising land and construction material prices. All these factors are expected to drive up housing prices by approximately 5-10%, while potential buyers may have limited purchasing power.

Prevention approach:, the real estate market outlook for 2024 indicates a reduction in both supply and demand compared to the previous year. The company has adjusted its sales strategy to align with market conditions by focusing on customers with real demand. The company is also emphasizing product differentiation to better meet consumer needs in terms of project location, design, and competitive pricing. Additionally, managing costs, expenses, and cash flow appropriately will be crucial for business operations

In addition, the company has begun operating businesses that generate recurring income, such as parking buildings located at Soi Chai Phuang, Vibhavadi Rangsit Road, and the area around the Lat Phrao intersection.

In August 2024, the company will open the Nirvan Porch community mall, developed to add value to the housing project in the surrounding area. It is a general community mall catering to the local population with amenities that focus not only on restaurants but also services and a small supermarket. The project is located on the newly extended Krungthep Kreetha Road, an area with increasing residential density. It is connected to expressways and several main roads such as Rama 9 Road, Srinakarin Road, Krungthep Kreetha Road, Ramkhamhaeng Road, the Kanchanaphisek Ring Road, and Chao Khun Thahan Road, as well as certain minor roads that link to other major routes. Additionally, it is not far from the expressway, such as the motorway. This is part of the company's plan to diversify risks and expand businesses that generate continuous income in the future.

Operational Risk

Risk of Land Acquisition for the Future Projects Development

Land is the key of real estate development, considering location is therefore the most important factor in real estate business as well as the expedience of access to utilities, including road, transportation, sky train, tap water, and electricity, etc. The locations with potential suitable for project development are also desired by real estate developers.

The Company focuses on developing projects along new roads and in community areas, which are also preferred by entrepreneurs. However, since land is the main factor in real estate development business, there is competition in the purchase of land with high potential. Therefore, the purchase of land in a location that is not in accordance with the business plan or the risk of expensive land acquisition will affect the operation plan as well as the project development cost. As a result, it is unable to develop projects that yield returns according to the company's investment policy.

Prevention approach: The Company plans the long-term investments in advance, as well as determines a land purchase plan in accordance with business plans, liquidity, and economic conditions, including plans to support changes and uncertainties in the future in accordance with changing circumstances such as acquisition of land for project development, considering the suitability of launching new projects by studying the feasibility of a comprehensive investment in project development. In addition, the Company has a rigorous and transparent process before making a land purchase decision, with a working group to consider market information, competitors, compare land prices with government appraisals and independent appraisals, which will be used as a framework for considering the location and reasonable price with the brokers partnering with the Company, it can reduce the risk due to the inability to acquire land in the location and price in accordance with the company's business plan.

Risk of Construction Material Price Increases

In November 2024, the overall construction materials price index stood at 112.8 points, an increase of 0.4% year-on-year (YoY), but a decrease of 0.3% month-on-month (MoM). When considering the first 11 months of 2024 (11M/67), the index showed a slight contraction of -0.2% YoY, reflecting the volatility of construction material prices in the market. This was due to a decline in the steel and steel products category, as well as cement, which dropped by 2.7% and 3.9%, respectively, compared to the same period last year. Meanwhile, the index for main construction materials, concrete products, and tiles remained stable, with only a slight decrease compared to the same period last year. The wood and wood products group, as well as the electrical and plumbing equipment group, saw an increase compared to the same period last year.

The outlook for 2025 forecasts that construction material prices will remain volatile, particularly in the steel and cement categories, where demand remains uncertain both globally and domestically. The recovery of investments in government projects, including large-scale infrastructure projects, may increase demand for certain construction materials. Energy prices will continue to be a key factor influencing the production and cost of construction materials.

Prevention approach: The Company emphasizes to closely monitoring the prices of construction materials and labor by estimating the entire cost of construction project from the period of the investment feasibility study to reflect the total cost and to consider the appropriate selling price. Efficiently controlling construction material prices can reduce the risk of rising project development costs and enable the Company to maintain significant profitability. Therefore, the Company attaches importance to the prevention of such risks.

The Company will procure a large number of construction materials, which are the main materials used in project development and with high value to each contractor, due to the Company's bargaining power in purchasing construction materials in large quantities better than contractors, resulting in the Company being able to purchase such materials at a cheaper price, cost-effective and in accordance with the standards set by the Company as well as being able to reduce the burden on contractors with low liquidity in another way. The Company has a collective bargaining with the major construction material producers used in each project to agree on the delivery price in advance with the aim of preventing price fluctuations, this will enable the Company to maintain project cost levels for a specified period or throughout the project period, which can reduce the Company's production risks from rising construction material prices.

Risk of Contractors and Skilled Labor Shortage

The shortage of construction labor and skilled workers remains a significant issue for the real estate business. The Company has improved the process of procuring the main contractor to cover the procurement of construction materials and improve the construction process to serve quality standards. The Company has risk management include: 1) Hire contractors by controlling the purchase of construction materials by the Company will focus on the quality inspection of contractors. 2) Hire additional medium to large contractors as an alternative to the construction process. In addition, in the construction of each project, the Company will hire a contractor that is the first partner under the budget according to the investment plan and each project will be constructed by a single contractor through a turnkey construction contract, and 3) The construction department improves the material utilization plan and requires that the information is updated every month in order to control the cost to serve the target.

Prevention approach: The Company has reduced labor usage by adjusting some construction methods from the conventional construction to the precast construction with prefabricated concrete parts produced from the factory, thus the Company to reduce its dependence on labor and speed up the construction process while maintaining the quality in accordance with the construction standards.

Financial Risk

Risks of Liquidity and Funding

A major risk for real estate developers is the lacks of liquidity arising from the firm’s revenues are below targets while expenses are high, a lack of liquidity but a large amount of additional investment, a large in the amount of short-term debt that must be paid on time, as well as economic volatility. The high level of household debt in the country along with the change in lending policy of the Bank of Thailand has resulted in financial institutions being stricter in considering and approving Pre-Finance and Post-Finance.

Prevention approach: The Company must closely monitor liquidity issues, especially cash flows, accounts receivable, and must not incur debt that exceeds its ability to pay, and should delay investments that may cause a large amount of debt. If investments are required, risk assessment should be carried out as thoroughly as possible. In addition, there should be a collective bargaining with the bank in order to be as lenient as possible, as well as sufficient cash reserves and a warning signal are required in advance before problems arises.

For access to capital, the Company must hedge against potential risks by building credit with financial institutions based on strong operating performance and continued growth including managing its total debt to equity ratio no more than 2 times in order to manage capital efficiently and have reasonable financial costs, as well as having a partner financial institution ready to provide credit support for the development of the company's projects.

Risks of Increase Loan Interest Rates and Exchange Rate Fluctuations

In 2024, the Bank of Thailand reported that the overall financial system has become more stable, with commercial banks maintaining strong levels of capital and reserves. However, the quality of loans, particularly in the SME sector and among households with a slow income recovery, remains an issue that requires close monitoring. At the 6th meeting of the Monetary Policy Committee (MPC) on December 18, 2024, the committee decided to maintain the policy interest rate at 2.25% per annum, which is in line with the current economic and inflation trends. This decision reflects an effort to balance controlling inflation at a low level while supporting economic recovery.

Due to the Company borrows money from financial institutions to develop projects with fixed and floating interest rates. An increase in interest rates will increase the Company's cost of financing, which has a direct impact on the Company's net profit margin and increases project development costs.

In terms of exchange rate volatility, the Thai Baht continues to experience fluctuations due to external factors such as geopolitical uncertainties and trade policies of major economies. A depreciation of the Baht may lead to higher costs for importing construction materials, while an appreciation of the Baht could impact the sales of projects to foreign customers.

As the bond market has experienced risks from defaults, especially with corporate bonds, the Securities and Exchange Commission (SEC) has elevated the criteria for granting approval for issuing and offering bonds, as well as improved the guidelines for information disclosure to better align with the current situation. These changes will take effect from August 1, 2024, which has led to higher bond yields or interest rates on corporate bonds. Consequently, the company has adjusted its loan portfolio in 2024 as follows:

1. The "Secured Corporate Bonds of Nirvana Development Public Company Limited, Series 1/2023, Series 1" are due for redemption on September 30, 2024, with a value of 465 million baht and an interest rate of 6.40%. The issuer has the right to redeem the bonds before the maturity date. The company has received financial support in the form of a loan from a financial institution to repay these bonds, with the interest rate being reduced from the previous rate.
2. The "Secured Corporate Bonds of Nirvana Development Public Company Limited, Series 1/2022, Series 2" are due for redemption on December 17, 2024, with a value of 650 million baht and an interest rate of 6.80%. The issuer has the right to redeem the bonds before the maturity date. The company has received financial support in the form of a loan from a financial institution to repay these bonds, with the interest rate being reduced from the previous rate.

As a result of the financial institution’s support for repaying these bonds, the company’s total bond liabilities have decreased from 1,835 million baht at the beginning of 2024 to 585 million baht at the end of 2024. The company plans to shift from fixed interest rates to floating rates for its loans to align with future expectations of a potential decrease in policy interest rates, in line with the improving bond market conditions, as well as the anticipated reduction in financing costs.

Additionally, the company has opened a Foreign Currency Deposit (FCD) account for legal entities residing in the country to accommodate foreign currency transfers and manage the funds appropriately.

Prevention approach: The Company should establish an appropriate loan disbursement and repayment management plan, including negotiating interest adjustments and / or extending the loan period with the bank, as well as opening a foreign currency deposit (FCD) to be more appropriate.

Environmental Risk

Climate change caused by global warming is one of the most important environmental problems in the world. In the past, the global average temperature control measure to not increase more than 2 degrees Celsius compared to pre-industrial levels has not been successful, resulting in more serious risks, both directly, such as natural disasters, drought, etc., and indirectly, such as specify the strictly regulations and new standards, changing consumer behavior and changing technology, etc. The Company therefore has to formulate management and response strategies for climate change in order to mitigate the impacts that may affect production costs, competitiveness and sustainability of business in the future.

Prevention approach: The Company has analyzed risks and opportunities arising from climate change in various cases by providing modern innovations in consistent with the lifestyles of consumers in order to develop service models and products such as Nirvana's house design that consider the internal light channels and open spaces according to the concept of MASS & VOID including the circulation system of the wind inside the house and designed light direction to shine through the house thoroughly without generating adverse temperature inside the house due to selection of quality heat insulating materials can reduce the electricity consumption, as well as motion sensor system, the technology of motion detector in Nirvana’s homes that creates living convenience. Moreover, EV charger support, which is served to reduce global warming and consistent with the current policy of automobile technology development by installed outside the home in a parking area to serve all types of electric vehicles. In addition, the Company closely monitors and updates the information as well as encourages employees to save energy, and reduce water consumption and waste in order to protect the environment as another way.

Social risk

Risks of human rights violations

Conducting business responsibly in accordance with the international human rights framework is an issue of high concern all over the world today, especially business expansion, it is imperative that labor is required to drive business to success. Thus, causing the risk of operations that violate human rights. In addition, the world also emphasizes on gender equality as well as equality in other matters such as religion, color, race, and is ready to accept differences of opinion in order to apply in the business operations. Therefore, the Company recognizes the importance of human and labor rights management in its business operations in a systematic manner to prevent risks and impacts that may arise from human rights violations of stakeholders or related persons. The Company therefore aims to reduce risks from business operations that violate human rights throughout the business value chain.

The Company strives to operate its business under the policy on human rights and labor practices in order to prevent the human rights violations of all stakeholders from conducting business throughout the supply chain with international guidelines according to the UN Guiding Principles on Business and Human Rights (UNGP) and the International Labor Organization (ILO), including the labor laws of each country in which the Company does business.

Prevention approach: Due to the high competitiveness of the skilled labor market coupled with the changing of the global population entering the “Aging Society” era causing labor shortages, the Company is incentivized by providing benefits and compensation that are superior to those of competitors along with establish a clear career path. In addition, the Company in collaborated with the university, provide students an opportunity to do internships in many departments in order to persuade interested and potential people to cooperate with the Company.

Compliance Risk

Risks of Changing of law and regulation related to real estate business

Running a real estate business involves a number of laws and regulations, such as Town Planning Act, Land Development Act, Condominium Act, including the regulation change relating to the zoning of land use limits, etc. Aforementioned laws are complicated and able to change, which affect business planning, costs and expenses for the implementation of both low-rise and high-rise real estate development projects.

Prevention approach: The Company should be meticulous in its operations in accordance with the law, which if not complied with or incomplete compliance may result in costs, project development period and the Company's operational plans. In order to reduce the risk from laws and regulation related to the real estate business, the Company attaches great importance to strict compliance before purchasing land for project development, with a working group examining the restrictions on investment laws for existing development projects and those that will be enacted in the future thoroughly to ensure that the Company will be able to cope with current situation.

Risks of Compliance with Personal Data Protection Laws

According to the Personal Data Protection Act 2019 (PDPA) announced in the Royal Gazette on May 27, 2019 after being postponed to effective on June 1, 2022. The Company has announced the enforcement on December 1, 2021. However, the Company's operations involve the personal information of many groups of stakeholders, including customers, merchants, business partners, employees, etc. Moreover, it also involves the Company's personnel in many departments, causing inaccurate practices in accordance with the established regulations in matters such as notification of the privacy policy and asking permission to use the data for the implementation of the rights of the data owner as well as management in the event of data leakage, etc.

In the event that the data subject has requested the rights of the PDPA, but if the Company neglects to comply with the duty to consider the request and act accordingly in accordance with the rights of the data subject, or if the Company fails to comply with the PDPA until an incident where personal data is breached, it may affect the business with civil, criminal, and administrative penalties. In addition, it also causes damage to the reputation and credibility of the Company to customers.

Prevention approach: The Company appoints working groups and representatives of various departments to be responsible for reviewing work processes related to personal data such as acquisition, storage, implementation of the transfer, and data destruction, etc. in order to stipulate the operational measures in accordance with the law, as well as responsible for communicating knowledge and supervising the practice of personnel under the agency in accordance with the prescribed guidelines. In addition, the Company focuses on a number of technologies and tools related to the handling of personal data to reduce the likelihood of human error in the operation.

Management Risk

The risk from the case where the Companies group has major shareholders influencing the setting of management policies

As of December 31, 2024, the Company group's major shareholders, Somwattana group and Piyasombatkul group, hold 59.84% of the total shares, making the group of major shareholders has the power to control the Company group and influence the decision-making in all matters requiring approval from the shareholder meeting. Hence, the minority shareholders of the Company group are at risk from being unable to collect votes to check and balance the matters proposed by the major shareholders to the shareholders' meeting for consideration. In addition, the concentration of shareholding by a major shareholder would prevent the possibility of the Company group takeover by another person without the consent of this major shareholder.

Prevention approach: However, the Company appoints 5 outsiders to be Independent Directors and Audit Committee out of total 9 directors, thereby balancing the power of management to a certain extent. In addition, in the case of entering into a transaction related to the director, major shareholder and those with controlling authority including persons who may have conflicts of interest, such persons will not have voting rights to approve such transactions.

The Company is aware of new risks that may occur and severely impact or affect the opportunity to expand new business to the organization by assessing and reviewing the emerging risks that may occur in the future as follows:

The risks from changing demographic structure and consumer behavior

In addition, the ongoing geopolitical tensions have led to an increased global awareness among consumers in 2024, with a growing focus on environmental issues, which has been more pronounced compared to the past five years. Consumers are now more conscious of utilizing technology in a way that maximizes benefits, particularly in terms of health and well-being. There is a greater emphasis on value, price, and environmental impact when making decisions. This development, which has continuously progressed, significantly influences consumer decision-making and has become an integral part of the modern lifestyle. Social media platforms such as Facebook, Instagram, Line, Twitter, WhatsApp, Skype, and others have played a key role in this shift, shaping the way people engage with the world around them.

Prevention approach: The Company had to adjust its strategy to build consumer confidence in both safe and germ-free living, therefore, the space was designed to serve to the changes that occurred such as increasing the working space in the house, creating an online platform to visit the sample house, and see various information, including social media, 360 VR home tour, www.nirvanadevelopment.co.th , Private VDO call with the Personal Assistant, or Nirvana Online Booking system in order for customers able to be an owner the Nirvana home anywhere, anytime by adding more sales channels such as developing employees to be influencers for live selling houses or booking online without having to visit the sample houses at the project as well as customers able to view the house in 360 degrees in order to be more outstanding than their competitors and serve the changing consumer behavior.

Risk of Climate Change

Since the stakeholders are now aware of climate risks and their impacts on investment, thus the Securities and Exchange Commission (SEC) has announced its participation as an official sponsor of the Task Force on Climate-Related Financial Disclosures (TCFD Supporter) and encourages the integration of climate risk factors into business strategy and risk management as well as disclose information according to international standards. In this regard, the One Report also raises the level of information disclosure in the areas of sustainability and environment, society and governance (ESG). Ultimately, climate risk shall be added to financial risk because it affects the business model, long-term cash flow, and profitability. It also affects the valuation of assets and business values.

The climate change caused by global warming has resulted in rapid and severe climate changes, leading to natural disasters and environmental issues in many areas of Thailand, such as rising temperatures, earthquakes, storms, flooding, and PM2.5 dust. These impacts affect resource management in business operations and may cause damage to the company's assets, as well as affect customer services.

The company has assessed the impact of climate change, which can be categorized as follows:

1. Impact on Residential Project Development

Flooding: The project locations face frequent flood risks, affecting project planning and infrastructure.

Air Quality: PM2.5 dust and air pollution pose challenges in designing homes and buildings with effective air filtration systems.

Rising Temperatures: Homes must be designed to reduce energy use, such as using heat-insulating materials and reflective surfaces.

2. Impact on Operational Costs The need for high-quality construction materials to withstand extreme weather conditions increases development costs. Additionally, higher energy costs arise from using cooling systems or air conditioning.

3. Impact on Consumer Demand Consumers prioritize homes designed to adapt to climate change, such as those utilizing renewable energy or with increased green spaces.

Prevention approach: To address climate change impacts, the company has established the following management measures:

1. Sustainable Design and Construction: Implement designs that reduce the impact of climate change, such as creating green spaces within the project and along roads, improving building ventilation to reduce heat, and installing solar panels. Use energy-efficient and eco-friendly construction materials.
2. Site Planning and Management: Choose project locations safe from natural disasters, particularly flooding. Construct effective drainage systems to reduce flood risks.
3. Comprehensive Risk Management: Conduct thorough environmental risk assessments for all projects and develop a Crisis Management Plan, along with training employees to handle emergencies.
4. Communication and Awareness: Promote climate change awareness among employees and consumers, using various communication channels to explain the company’s management measures.

Risk of Information Technology Security

Risks of information technology security arise with various databases of information systems within organizations that may cause data damage or destruction, the risk of data intruders, the theft of important information, such as customer information, supplier information, and theft of data alteration; these risks all require information management. Therefore, data security is important because information is a factor for management to make planning decisions. Thus, information security from various threats, insiders and outsiders, natural disasters, or any incidents shall be analyzed and prevented to ensure the stability of information systems and technology.

Due to the rapid and continuous advancement in information technology, there are risks associated with IT security or any technological threats that may arise from system failures, human error, and cyber-attacks, etc. If the information system crashes or encounters any situation that causes data loss or data leakage, non-operation and/or malfunctions may have severe and serious consequences for the Company in various aspects, including operations, competitiveness, credibility, and the reputation in the industry.

The Company has risk management by establishing new information system management regulations and IT security policies under the Company's policies and regulations by implementing security measures such as firewall installation, couple hardware working together, antivirus software, software patch, backup facility, and key system access permissions, etc. Additionally, the Company raises awareness about IT security issues for its employees through regular training, risk assessments, and audits.

1. In Case of an Infectious Disease Outbreak

Although the pandemic situation in Thailand has improved and become more controllable in the past year, various business sectors have prepared Business Continuity Plans (BCP) to ensure uninterrupted operations in the event of a government-declared outbreak or partial lockdown in Bangkok.

As a property developer, the Company has established a Business Continuity Plan to ensure the continuity of business operations, with the following preventive measures:

1. The Company has divided employees in critical departments into two groups: one working remotely from home and the other working at designated locations. The Company has provided necessary tools and systems for remote work, ensuring full access to internal data and resources.
2. A digital platform for sales and customer service has been developed, enabling customers to explore housing options and access information via various online channels including social media, 360-degree VR home tours, the website nirvanadevelopment.co.th, private video calls with personal assistants, and the Nirvana Online Booking system. These platforms allow customers to own a Nirvana home anytime and anywhere, with features like live streaming sales events, online booking, and employee training to become online influencers—allowing customers to book without visiting the physical site.
3. The Company continues to enhance employee capabilities in essential technologies, emphasizing the adoption of digital technology to foster organizational flexibility (Organization Transformation), enabling the business to quickly adapt and operate amid uncertainty.
4. Implementation of cost-cutting measures and effective cost management strategies to eliminate unnecessary expenses.

2. In Case of Flood, Fire, Earthquake, PM2.5 Pollution, or Political Protests

Recognizing the diverse nature of potential crises or emergencies, the Company emphasizes the importance of critical resource planning in its crisis management framework. These resources must be identified in the business continuity plan, based on impacts in five key areas:

1. Impact on buildings/primary workplaces: Events that damage or render office premises inaccessible.
2. Impact on essential materials/equipment: Events that prevent the use of vital operational tools and equipment.
3. Impact on IT systems and critical data: Events affecting IT infrastructure or rendering vital data unusable for operations.
4. Impact on personnel: Events that prevent staff from performing their duties as usual.
5. Impact on key stakeholders: Events that hinder stakeholders from engaging, providing services, or delivering outputs.

Preventive Measures and Business Continuity Plan:

1. Establish a Crisis Management Team, assigning clear roles and responsibilities, along with policy development, drills, and simulations to ensure understanding and readiness in implementing the plan.
2. Conduct impact assessments on operations, categorizing potential impacts as high, medium, low, or non-material to the business.
3. Identify and prepare essential resources, including:
   • Alternative work locations
   • Necessary equipment such as computers, notebooks, mobile phones, printers, photocopiers, UPS, backup power systems
   • Information systems and data management, including backup and recovery plans
   • Key personnel required during crises
   • Backup staff or external personnel in case of shortages
4. Regularly conduct simulation drills involving the continuity team and related personnel to reinforce understanding and practice of the BCP and use the feedback to improve each department's readiness plan.