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Mitigating our top risks
continued
Risk name and impact if not managed
Mitigation strategies
Link to
strategy
Liquidity and hard currency availability
Currency fluctuations in emerging markets has in many instances
been volatile. This, together with poor economic performance, has
impacted on the availability of hard currency in these markets.
Adverse changes in interest rates could result in higher costs of
funding and reduced returns.
Inability to repatriate earnings due to various reasons such as
shortage of foreign currency, stringent exchange laws and
regulations governing repatriation of earnings may have impact
on our capital-intensive programmes.
1
• Conversion of contracts from foreign
currency to local currency where
possible.
• Maintain sufficient headroom facilities to
manage liquidity.
• Repatriation of funds from Iran is ongoing.
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. This could lead to reputational damage, disruption
of services and the loss of customers, in turn impacting revenue and
EBITDA margins.
3
5
• Establish a significantly enhanced
information security function to proactively
manage cyber security and privacy risks.
• Develop and implement a comprehensive
Group-wide information security plan.
• Enhance security-monitoring and
incident-response capabilities.
Strategic execution risk
Successful achievement of MTN’s strategy is underpinned by
efficient execution of strategic initiatives and programmes. Delays in
implementation may result in not realising the benefits from the
programmes in a timely manner. The numerous changes made within
the Group, along with a large number of programmes being
executed simultaneously significantly impacts the level of this risk.
• Re-evaluation and consolidation of all the
strategic programmes/initiatives to drive
maximum benefits.
• IGNITE programme to monitor benefits
from strategic programmes.
Create and maintain a competitive advantage
The telecommunications and IT industry is characterised by rapid
technological changes. Our commercial success depends on
providing services at competitive prices as well as differentiating
our offerings. Severe pressure on margins from existing and new
revenue streams negatively impacts the return on capital invested.
Lack of agility to respond to changing market conditions may affect
our market share and revenue streams, as well as profits.
MTN is moving into a new phase of its journey where commercial
and operational excellence and innovation are becoming
more critical.
2
5
• Launch of global value propositions
integrating voice, data, SMS, mobile
financial services and digital offerings.
• Leverage on business intelligence and
customer value management to improve
customer insight and drive customer
value.
• Focus on smartphone penetration as key
driver of data monetisation and adoption
of apps.
• Leverage on cloud and technology to
improve efficiency and agility.
• Leverage technology to deliver digital
experience innovations to our customers
in a differentiated way.
• Use of customer feedback.
5
MTN Group Limited
Integrated Report 2016
38