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Principal risk
Context
Mitigating actions
Strategic
Objective
04
Market disruption
(All markets)
Speed of impact:
Slow
Rating:
New
We are experiencing intensified
competition from a variety of new and
existing technology providers, new
market entrants and competitors.
•
Monetise the network and personal data assets by using Big
Data and real-time analytics to provide personalised services
to customers.
•
Implement pricing strategies to manage the decline of
traditional voice revenue through migrating voice to data.
•
Established a team that analyses and provides insight into
customer behaviour to better position our offerings and
further segment our customers with relevant offers and
services.
•
Ensure superior customer service strategy in place.
05
Adverse political
measures and
regulatory
pressures
(All markets)
Speed of impact:
Slow
Rating:
Up (2017: 7)
Stringent requirements set by the
regulator or government legislation
could have an impact on Vodacom’s
profitability, growth and services in our
operating countries. Recent significant
regulatory and policy changes include
mobile termination rates, new mobile
financial services licences and
regulations, DRC’s sub-contracting law,
BEE compliance and the Electronic
Communications Amendment Act in
South Africa.
•
Specialist legal, regulatory and government relations teams
at Group and in all operations.
•
Engage external advisors and legal counsel to support our
activities.
•
Engage key stakeholders, and utilise targeted intelligence
reports, to understand material legislative changes.
•
Proactive engagement with government and other key
stakeholders to communicate key messages and proposals
on how policy/regulatory decisions positively and negatively
impact the sector.
•
Participate in broader government objectives and public
interest through national industry associations, the GSMA
and other influential national/international organisations.
•
Regulatory Compliance Policy and a related combined
assurance programme in place to ensure that all risks are
documented and assessed and that action plans are in place
and tracked.
06
Failure to deliver
on strategic
projects in
regards to fibre
and convergence
(South Africa)
Speed of impact:
Slow
Rating:
Up (2017: 8)
Failure to deliver on new services will
negatively affect the future growth of
the organisation. Key projects such as
our roll-out of fibre or converged projects
could impact on Vodacom’s ability to
remain competitive.
•
New divisions established to focus on strategic projects
relating to fibre and digital services.
•
Review options to assist in the growth of our fibre offerings
either through build or buy.
•
Review and monitor our current revenue streams so that we
are able to proactively implement controls to manage
potential substitution.
07
Technology
failure
(All markets)
Speed of impact:
Very rapid
Rating:
Down
(2017: 4)
Our customer value proposition is based
on the reliable availability of our
high-quality network. A major failure in
critical network or information
technology assets – for example,
through natural disasters, insufficient
preventative maintenance, or malicious
attack – would have a profound impact
on our customers, revenues and
reputation.
•
Invest in maintaining and upgrading our network on an
ongoing basis, with comprehensive business continuity and
disaster recovery plans in place.
•
Investments to ensure adequate redundancy capabilities
where feasible.
•
Comprehensive insurance policies in place.
•
Self-provided transmission links on critical routes in our
networks to reduce reliance on external parties.
Our principal risks
continued
64
Vodacom Group Limited
Integrated report for the year ended 31 March 2018