Company: HBCYF
Filing Date: 2025-02-20
Form Type: 20-F
Source: 0001089113-25-000040
Chunk: 152

Company: HSBC HOLDINGS PLC
Filing Date: 2025-02-20
Form: 20-F
Chunk 152
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 management of intellectual property risk in line with our risk appetite.

| Responsible AI                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         |
| Artificial intelligence (‘AI’) and other emerging technologies provide the opportunity to processand analyse data at a depth and breadth not previously possible. While these technologiesoffer significant potential benefits for our customers, they also pose potential ethical risks forthe financial services industry and society as a whole. We have a set of principles to helpensure we consider and address the ethical issues that could arise. HSBC’s Principles for theEthical Use of Data and Artificial Intelligence are available at www.hsbc.com/ai.We continue to develop and enhance our approach to, and oversight of, AI, taking intoconsideration the fast-evolving regulatory landscape, market developments and best practice. |

| 82 | HSBC Holdings plcAnnual Report on Form 20-F |

ESG review | Governance

Cybersecurity The threat of a cyber incident remains a concern for our organisation, as it does across the financial sector and other industries. As cyber-threats continue to evolve, failure to protect our operations may result in disruption for our customers and our business, cause financial loss or loss of sensitive data, and can have a negative impact on our customers’ and our own reputation, among other risks. We continue to monitor ongoing geopolitical events and changes to the cyber-threat landscape and take proactive measures with the aim of reducing any impact on our customers. Prevent, detect and mitigate We invest in business and technical controls to help prevent, detect and mitigate cyber threats. Our cybersecurity controls follow a ’defence in depth’ approach, leveraging multiple security layers, and recognising the complexity of our environment. Our ability to detect and respond to attacks through round- the-clock security operations centre capabilities is intended to help reduce the impact of attacks. Our cyber intelligence and threat analysis team proactively collects and analyses internal and external cyber information to continuously evaluate threat levels for the most prevalent attack types and their potential outcomes. We actively participate in the broader cyber intelligence community, including by sharing technical expertise in investigations, alongside others in the financial services industry and government agencies around the world. In 2024, we continued our programme of continual improvement to further strengthen our cyber defences and enhance our cybersecurity capabilities to help reduce the likelihood and impact of unauthorised access, security vulnerabilities being exploited, data leakage, third-party security exposure and advanced malware. One key area of focus is the increasing use of AI, which could be used to facilitate sophisticated cyber-attacks. We are enhancing governance processes to manage potential cybersecurity risks