Aer Lingus 2010 Annual Report Download - page 17

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Annual Report 2010
15
Risk Impact Mitigation
IT systems We are dependent on IT systems for most of our primary
business processes. The performance and reliability of these
systems is critical to our ability to operate and compete
effectively. Any failure of a critical IT system, for example in
the areas of passenger bookings and yield management
could adversely impact revenue generation and fi nancial
performance. In addition, Aer Lingus has identifi ed the need
to upgrade certain parts of its core revenue and staff
rostering systems in 2011.
The group has put in place, and continues to invest in,
technology security initiatives and disaster recovery and
business continuity arrangements to mitigate the risk of a
critical system failure. Project teams have been established
to manage the IT upgrades and risk management plans are
being developed for these new implementations.
Pensions A default in the payment of basic pension benefi ts under the
Group’s Irish pension schemes could possibly result in a
future claim against the Group. The position of the Group is
that the liability of the group to contribute to the Irish
pension schemes is fi xed at their current contribution rates,
and cannot be varied without the Group’s consent. This is
refl ected in the documents governing the schemes. If the
schemes were to default on the payment of basic benefi ts at
some time in the future, lengthy litigation could ensue. If,
contrary to the fi rm legal advice which the company has
received, a Court were to fi nd against the company in any
such litigation, signifi cant or very signifi cant loss could
arise.
Any attempt to make the group responsible for any shortfall
in the Irish pension schemes would be resisted strenuously.
Financial Details of the principal fi nancial risks to which the group is exposed, and the approach to mitigating them, are set out in
Note 3.1.
Principal risks and uncertainties Aer Lingus Group Plc