Our risks
Using a combined assurance methodology, in 2013, we considered the following to be MTN’s top five risks based on the
residual risk rating, which considers both probability of occurrence and impact of the risk should it materialise. The residual
risk rating takes into consideration the mitigation strategies in place to manage the risk. Management attention has been
focused on these top five risks to ensure effective and adequate progress on mitigation strategies:
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Adverse regulatory changes or
non-compliance with the laws
and regulations
Increased regulatory or legal
changes/requirements may
negatively impact our business
model. |
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Proactive and transparent engagement with authorities at
Group and country opco level. |
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Reinforcement of local regulatory and legal teams in the opcos
with a stakeholder management framework, crisis
communication policy and issue management framework to
proactively engage with relevant regulatory bodies, showcase
international best practices and promote environmentally
friendly solutions. |
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A tax risk management framework and mitigation strategies
developed and deployed at all MTN opcos. |
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Create and maintain a competitive
advantage
Lack of agility to respond to
changing market conditions may affect our market share and
revenue streams. |
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We continue to refine our product offering, as well as actively
develop new opportunities to ensure the delivery of our vision. |
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We strive to create a customer experience that differentiates us
from the competition – this includes maintaining a positive brand
perception, ensuring the availability of a broad range of products
and services and a high quality and consistent customer
experience at all touch points. |
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Network performance
Lack of effective capital investment
to enhance and maintain our network will negatively impact our
customer experience. |
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Continue with the implementation of our core network
modernisation programme and associated upgrades to
increase capacity and reduce network quality issues. |
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Continuous network monitoring; focus on expanding our
network quality and coverage to ensure sufficient capacity to
carry traffic seamlessly. This is a key focus area within the new
customer experience project as MTN strives to provide our
customers with the best network and services. |
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Continue with the standardisation and optimisation of systems and technologies. |
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Financial performance targets
Lack of programmes to drive
operational efficiencies as
competition for customer
wallets intensifies. |
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MTN has embarked on several initiatives to transform its operating
model with the objective of:
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Driving new revenues beyond traditional voice and SMS and
improving efficiencies across the Group; |
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Extracting more efficiency by operating as one company,
leveraging our scale for efficiencies; |
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Enabling revenue growth from new businesses effectively; and |
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Eliminating non-value adding activities by implementing
control measures to enhance cost efficiency. |
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Compromised information security
Lack of an effective Group-wide
information security programme may compromise our information
as a result of an increase in
cyber-attacks worldwide.
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MTN has rolled out a Group-wide information security
programme to address information security requirements. This
is based on global leading industry practices and standards
such as ISO/IEC 27001:2005. |
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A Group information security officer and local information
security officers have been appointed with appropriate
supporting governance structures and frameworks. |
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Continuous monitoring of information security controls and
emerging information security risks and their potential impact
on MTN. |
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For an explanation of each strategic theme icon, see page  16. |
