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Vodacom Group Limited
Integrated report for the year ended 31 March 2016
20
Our material risks
Each year, the Vodacom Group Board reviews the critical strategic risks facing the company and approves
the Group’s risk appetite. The identification and assessment of these risks are informed, amongst
other things, by an understanding of our business model (page 12), significant trends in our operating
environment (page 14) and the relevant interests of key stakeholders (page 16). A review of our risk
management processes and structures is provided on page 63.
Context
Mitigating actions
Strategic
response
Regulatory decisions and
changes in regulation
We must comply with a wide range of requirements that
regulate the licensing, construction and operation of our
networks in our operating countries. The decisions of
regulators relating, for example, to the granting of
spectrum licences, customer registration requirements,
BEE compliance (in South Africa), and wholesale and
retail tariffs, may impact our business model.
We have established specialist regulatory and
government relations teams.
We participate actively through written submissions
and formal hearings on legislative and regulatory
changes.
We have access to best practice and international
debate through Vodafone.
We conduct detailed scenario planning on an ongoing
basis.
Increased competition
We are facing increased competition in all our markets,
including from some non-traditional sources. Our ability
to compete effectively depends on the quality, capacity
and coverage of our network, the quality of our
customer services, and the pricing and nature of our
services and devices. Ensuring that we proactively
anticipate, and where necessary respond to, changing
market conditions is essential to maintaining revenue
growth.
We ensure competitor differentiation by investing
significantly in network infrastructure to ensure
leadership in coverage, call quality and data speed.
We strive to deliver a differentiated customer
experience by constantly reviewing the pricing and
nature of our products, services and devices, and the
quality of customer care.
We invest in new technologies and the reach and
quality of our sales and distribution channels, seeking
to improve the customer experience across all
touch-points.
Unpredictable political,
economic and legal risks
The value of our investments in our markets may
be affected by political, economic, tax and legal
developments beyond our control, including
developments due to public sector corruption.
The mobile communications industry can often be
subject to unpredictable, higher direct and indirect
taxes in our countries of operation.
We have a comprehensive stakeholder relations
strategy in place in all our countries of operation.
We have implemented an anti-corruption, anti-money
laundering and anti-terrorist financing programme to
prevent the giving and receiving of bribes and other
corrupt acts.
We have a specialised tax management capability, and
seek expert tax advice as needed.
We will consider litigation to enforce compliance with
legislation among competitors.
We adjust our products and services to continue to
serve customer needs, especially in the tough
economic environment.