27 / 102
Principal risk
Context
Mitigating actions
Strategic
Objective
7
Adverse
political
measures and
regulatory
pressures
Speed of impact:
Slow
>12 months
Stringent regulatory or legislative
requirements could necessitate
significant changes to current
business practices, impacting our
profitability, growth and services in
our operating countries. Recent
significant regulatory and policy
changes include: recommended
retail and wholesale price control on
roaming; recommended changes to
ICT policies, JSE Listings Requirements,
customer registration requirements
and BBBEE compliance in
South Africa.
•
We engage constructively with governments,
regulators, tax authorities and other stakeholders,
nationally and internationally, through written
submissions and formal hearings on legislative
and regulatory changes.
•
We have established specialist regulatory and
government relations teams, and where
appropriate, we engage advisers and legal counsel
to obtain legal opinion.
•
We have access to best practice and international
debate through Vodafone.
8
Failure to
deliver on
new services
and strategy
Speed of impact:
Slow
> 12 months
Failure to deliver on new services or
Vodacom’s new strategy will
negatively affect the future growth of
the organisation. Key associated risks
include: inability to access required
infrastructure; inability to access
quality content at reasonable prices
and to forge effective content
partnerships, failure to deliver on fibre
rollout plan; failure to compete
effectively on ‘converged products’.
•
We have policies, procedures and organisational
measures in place to ensure that we maintain a
sustainable competitive position, defending our
leadership position in mobile and growing fixed
income in areas with growing convergence.
•
We are driving competitive next generation access
(NGA) coverage through wholesale access and our
own investments, securing access to content, and
developing our ability to grow scale in fixed-line
services quickly.
•
The Board is updated quarterly on the progress on
strategic objectives to ensure that the necessary
action plans are implemented.
9
Non-
compliance
with laws and
regulations
Speed of impact:
Rapid
6 – 12 months
A breach of regulatory requirements
could expose Vodacom to significant
financial and reputational damage.
•
We have subject matter experts in legal and
regulatory teams at a local and global level who
manage risk across the Group. Our compliance
teammonitors all high-risk policies, and tracks and
reports on remedial actions for non-compliance or
partial compliance.
•
We maintain a policy of zero-tolerance towards
bribery by any employee or third party operating
on our behalf, and we run employee training and
awareness programmes aimed at reinforcing an
ethical culture across the organisation.
•
We have robust, proportionate, risk-based controls
to prevent, detect and report money-laundering
and terrorist financing. Our reliance on third
parties is mitigated by training and monitoring.
10
Litigation
Speed of impact:
Slow
>12 months
A failure to obtain favourable results
during litigation could lead to
financial loss and/or negative
publicity.
•
We have policies and processes in place to ensure
that we have robust contracts with our partners,
staff and customers, and that we comply with all
contractual agreements and legislation.
23
Our business
Operating context
Delivering on our strategy
Our governance structure
Administration
Our Strategies
Best Customer
Experience
Best
Technology
Digital Organisation
and Culture
Segmented
Propositions
Our Brand and
Reputation