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Mitigating our top risks
Here we provide details of our top risks in 2016, the mitigation strategies we implemented
and how well they worked, as well as the link of each risk to our strategy and the
associated opportunities.
Risk name and impact if not managed
Mitigation strategies
Link to
strategy
Adverse regulatory changes or non-compliance with laws
and regulations
We have business ventures in a large number of jurisdictions
and therefore must comply with an extensive range of laws and
regulations. Increased regulatory or legal changes/requirements
may negatively impact our business model, and affect revenue
and profits.
3
5
• Strengthening of compliance and
regulatory functions and governance
structures.
• Enhancing skills in the compliance and
regulatory environment.
• Enhancing non-compliance monitoring
and reporting via a Red Flag Database.
• Close monitoring of subscriber
registration processes.
• Assigning greater audit focus/coverage
to compliance and regulatory processes.
Network performance
We depend on the uninterrupted operation of our networks to provide
our services. From time to time customers experience data quality
issues because of network constraints. Lack of timeous, effective
and efficient capital investments to cater for greater subscriber
numbers and traffic could lead to a loss of customers, and in turn
a loss in revenue and a reduction in EBITDA margin.
2
3
5
• Implementation of network modernisation
programme.
• Improvement of disaster recovery plan
guidelines to enhance resilience of our
networks.
• Focus on spectrum acquisition, efficiency
and utilisation.
Financial performance
Economic performance of the emerging markets in which we
operate has been impacted by a fall in demand for and prices
of commodities, and a slowdown in economic growth. This has
adversely impacted the value of the currencies of these markets.
Revenue growth is significantly hampered by a reduction in industry
tariffs, regulator-imposed disconnections of subscribers and
increased competition.
As our performance is closely watched by stakeholders, any
lower-than-expected performance may impact our brand and
reputation.
1
2
3
5
• Closely monitor industry and market
segment trends.
• Implementing governance to ongoing
cost-saving initiatives.
• Focus on growth in data revenue and new
revenue streams from digital businesses.
• Focus on developing digital and EBU
segmented reporting to provide view
on new revenue streams.
• Rollout of zero-based budgeting.
• Renegotiate with vendors to convert
forex-denominated contracts to local
currency.
MTN Group Limited
Integrated Report 2016
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