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MultiChoice South Africa Holdings Proprietary Limited
Integrated annual report 2018
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Key strategic risks
Risk description
Existing controls and management actions
Risk
Regulatory and competition enquiries
h
Level of regulatory and competition authority
risks continues to present significant
challenges
h
Ongoing regulatory review and contact with regulatory
authorities and public industry bodies
h
A dedicated skilled team (of internal and external
experts) assists with enquiry projects and submissions
Risk
Disruption and competition risk
h
Technology disruption in the race to gain
customers is an enabler for increased
competition
h
Increased competition for content rights
h
Continued focus on emerging technologies as well
as innovation in our own products and services
h
Offer better products, value and customer service
h
Retain key content rights
Risk
Content exclusivity
h
Exclusivity of sporting rights and duration of
contracts are under regulatory inspection
across the continent
h
Maintain relationships with rights owners and the
continuous education of the impact of over-regulation
Risk
Content costs
h
Content rights are highly sought after and
increasingly expensive
h
Rights reviewed regularly, economic value of sets of
rights considered, and competitive bids tabled
accordingly
Risk
Economic and currency risk
h
Consumers under increasing economic
pressure, affecting size of the potential
subscriber base and subscriber retention
h
Value of local currencies against major
foreign currencies aggravating cost impact
of international content
h
Continued focus on reducing costs and improving
process efficiencies
h
Offering options for customers to suit their
circumstances and pockets
h
Focus on customer needs and concerns
h
Financial risk policy compliance monitored
continually
Risk
Operational technology (business continuity) risk
h
Technology failures in broadcasting, digital
playout, customer service or value-added
services may affect customer retention and
acquisition, and are ongoing operational
risks to the group
h
Complexity of operations is worsened by a
high level of integration (broadcasting and
billing systems)
h
Development of an IT control framework for
implementation throughout the group
h
Significant simplification of billing and business rules
h
Strict testing programmes implemented for all
software launches
h
Outdated key equipment and platforms built at
the disaster-recovery site
h
Investing in systems
Risk management report
(continued)
Review
(continued)