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OPERATIONAL REVIEW
(CONTINUED)
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MultiChoice South Africa Holdings Proprietary Limited
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Integrated annual report 2017
RISK MANAGEMENT REVIEW
(CONTINUED)
Material
issue
Description
Mitigation
Stakeholder
impacted
Strategic objective
impacted
Content rights
Strategic
Failure to secure/
renew critical sports
rights and increase
in related costs
à
We regularly review
sports rights and assess
their economic value to
ensure continued viability
of the offering
à
Continuously invest and
build local sport and
remain a major funder
of sport development
à
Improve the quality of
viewing with technology
enhancement
à
Customers
à
Shareholders
Renewal of key sport
rights and increased
hours of produced local
content
Strategic
Pro tability,
availability and
optimal packaging
of local and
international content
à
Strong long-term
relationships with studios
à
Negotiations for new
content and renewals
focus on economics and
potential customer
attraction
à
Signi cant investments in
local productions with
improved oversight and
regular internal audit
reviews
à
Customers
à
Shareholders
à
Suppliers
Renewal of key content
rights and increased
hours of produced local
content
Market factors
Strategic
Increase of
economic pressure
on SA customers
affecting retention
and growth
à
Ongoing focus on costs
and ef ciencies
à
Shareholders
à
Customers
Growth in customer
numbers
Operational
Currency volatility
against our major
trading partners
continues to impact
the cost base
à
Implementation,
compliance with and
monitoring of the group’s
hedging policy
à
Shareholders
à
Customers
Ensure compliance
with legislation and
governance frameworks
Compliance
Tax complexities
and pressure on
SARS to increase
collections, present
an increasing risk to
the business
à
Deal with tax enquiries
timeously and
appropriately
à
Internal tax resources
expanded
à
Shareholders
à
Regulators
Ensure compliance
with legislation and
governance frameworks