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Our principal risks
Each year, the Vodacom Board reviews the critical strategic risks facing
the company and approves the Group’s risk appetite. The Board
considers business risks when setting strategies, approving budgets and
monitoring progress against budgets. The executive team regularly
reviews the risk management processes to improve the identification,
assessment and monitoring of risk, to ensure that we are responsive to
the ever-changing business environment.
This year, we enhanced our approach of identifying, assessing and reporting on risks by
introducing the concept of ‘principal risks’. These are the top 10 risks that have the
most significant impact on Vodacom’s ability to achieve its strategic objectives in the
long-term (‘macro risks’), and in the short- to medium-term (‘tactical sub-risks’). We
have also created an enhanced risk appetite framework and risk appetite statements
for each of the 10 principal risks.
Figure 1
Outlines the heatmap of Vodacom’s current principal risks.
Figure 2
Shows the speed of impact of the risk in relation to the risk ranking
(as per figure 1).
Risk rating
(Figure 1)
Risk and speed of impact
(Figure 2)
External
Risk rating
Low
Medium
High
Slow
(>12 months)
Rapid
(between 6 and 12 months)
Very rapid
(<6 months)
Speedof impact
2
3
4
5
6
1
7
8
9
10
Key focus areas
We have introduced an analysis of speed of impact,
reflecting the rate at which the company will
experience adverse financial impacts if the risk
materialised.
Likelihood
Impact
Low
Medium
High
1
Access to
spectrum
2
Cyber threat
3
Customer
data misuse
or leakage
4
Technology
failure
5
Failure to
deliver on
customer
experience
6
Unstable
market and
economic
conditions
7
Political and
regulatory
pressure
8
Failure to
deliver on
strategy
9
Non-
compliance
with laws and
regulations
10
Litigation
Key focus areas
Vodacom Group Limited
Integrated report for the year ended 31 March 2017
20