BT 2015 Annual Report Download - page 50

48 BT Group plc
Annual Report 2015
Risk description Impact Link to strategy
Supply chain
We operate in a global supply market. This enables us to
procure third-party products and services that help us deliver
to our customers wherever they are. There are often several
links in the ‘chain’ of supply of a product or service to us.
7KH{LQWHJULW\DQGFRQWLQXLW\RIWKLVVXSSO\FKDLQLVFULWLFDOWR
RXURSHUDWLRQVDQGWKHUHIRUHDVLJQLƬFDQWULVNWRRXUEXVLQHVV
e are coitted to ensurin that all dealins with suppliers
fro selection and consultation throuh to contractin and
paent are conducted in accordance with our tradin and
ethical policies. ee Suppliers on pae .
e have a nuber of suppliers that we have identified as
critical. he failure of one of these suppliers to eet its
obliations could cause sinificant har to our business.
e are coitted to evaluatin and respondin to an
associated riss where eo-political and aret forces could
ipact our suppliers abilit to support .
hile the sie of the ipact fro a supplier failure can var
all supplier failures typically result in an increased cost to
our business and have the potential to adversel ipact
custoer service our investents and our brand. n an
cases the costs associated with the failure of a critical supplier
could be sinificant particularl if this eans we have to
chane technolo. f we are unable to contract with an
alternative supplier our custoer coitents could also be
coproised possibl leadin to contractual breach loss of
revenue or penalties.
e are continuall testin the lobal aret for new sources
of suppl but this brins its own challene of suppliers
becoin ore eoraphicall and culturall diverse fro
ourcustoers.
 failure in our suppl chain to eet leal obliations or
ethical epectations could adversel ipact our reputation
orpossibl lead to censure leal action and financial loss.
 eliver superior
custoer service
 Transform our costs
Customer data processing
As a major data controller and processor of customer
information around the world we recognise the importance
of adhering to data privacy laws. Every day we process the
personal data of millions of consumer and business customers
DQGZHZDQWLQGLYLGXDOVWRIHHOFRQƬGHQWWKDWZKHQWKH\
give their personal data to us they can trust us to do the right
WKLQJ{ZLWKLW
ein trusted with custoer data oes further than ain
sure it is secure. t is about ensurin the interit of the personal
data we process onl retainin the inforation that we need
to provide custoers with the services for which the have
sined up. t is also about bein transparent around how we use
that data ain sure the personal data is processed leall
fairl and in line with custoers rihts and wishes. hrouh
ebeddin a robust data overnance fraewor we have
reinforced our epectations around personal data with our
eploees partners and third parties.
s a telecos and internet service provider we operate
under a strinent -hour reportin reie to notif the UK
nforation oissioners ce  should we becoe
aware of a personal data securit breach and to notif those
individuals who a have been ipacted without undue dela.
ailure to copl with relevant data protection and privac
laws could result in varin derees of neative ipact for .
hese include the possibilit of reulator enforceent action
fines class actions custodial sentences and a reulator
instruction to cease processin data.
e could also face reputational daae and financial loss
fro the failure to eet our leal reuireents as well
as incurring costs resulting from termination of customer
contracts and subseuent custoer churn. opanies such as
on which has suered hih profile data incidents have seen
a sinificant neative ipact on their share price cobined
with additional costs associated with non-copliance.
 eliver superior
custoer service