BT 2015 Annual Report Download - page 51

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Overview
The Strategic Report
Purpose and strategy Delivering our strategy
0ur lines of business Group performance Governance Financial statements Additional information
Changes over the last year Risk mitigation
e have increased our focus on cateor anaeent of suppliers.
ateor anaeent is a process that eans our buers can consolidate
specific cateories of spend across all our businesses so we can aiise
the operational and procureent sneries. t helps itiate the ris of 
not reachin its cost transforation obectives b enablin us to leverae
better deals with our suppliers and to intercept purchase orders where
better ters are available elsewhere.
Increased focus on in-life contract management of our critical suppliers is
deliverin benefits in ters of iproved supplier contract perforance and
ris control.
e conduct supplier ris analsis as part of our sourcin strate and where
possible tae actions to reduce ris such as throuh dual sourcin.
e undertae on-site supplier assessents to evaluate the riss associated
with a suppliers capabilit capacit and copetence to eet our
reuireents in a predictable ethical and sustainable anner.
 operates a coprehensive in-life ris anaeent process called
upplier watch that reconises the suppliers criticalit to our strate and
operations and scans for chanes across a rane of coercial financial
operational and reputational riss. e chec that the appropriate level of
supplier overnance is in place across the roup and test that appropriate
business continuit arraneents are in place for the ris of supplier failure.
ver 0 critical suppliers as noinated b the operational owners of the
business units that depend on the are covered b the process.
e loo for sins of supplier distress that enable us to itiate the ris
before it aterialises.  sall nuber of our critical suppliers went into
adinistration in 011 but in each case we were appropriatel
prepared with a business plan that iniised disruption to our custoers.
ocio-political econoic and environental conditions in certain arets
and eoraphies continue to challene soe of our suppliers and hihliht
the need for appropriate due dilience across our suppl chain.
rotectin our brand fro events in the suppl chain such as corrupt
practices the sourcin of conict inerals or possible huan rihts abuse
continues to deand a hih deree of focus.
ational reulator authorities have deonstrated an increasinl
aressive stance over the last 1 onths with the application of financial
penalties to both private and public oranisations in breach of their data
privac obliations.
or the first tie in the UK the  iposed ore fines than fco. utside
the UK lobal oranisations felt the force of their doestic reulators with
notabl the rench Information oissioner  and the U ederal
ounications oissions nforceent ureau iposin sinificant
penalties on oranisations for poor copliance practices.
he sensitivit of this ris is epected to increase as new ore robust
data privac laws are introduced throuhout the scope of our operations.
hecontinuin debate around the future U eneral ata rotection
eulation is alread inuencin how ultinational businesses address
thisris.
e have a rivac  ata overnance tea which is led b the hief rivac
cer and has continued to recruit individuals with the appropriate sills
and eperience as the reit of this tea epands.
he hief rivac cer oversees a robust overnance and onitorin
fraewor. his defines roles and responsibilities as part of a wider
approach to data assurance which utilises independent audits and reviews.
e trac all itiations to resolution to ensure that senior anaeent
areaware of the ris and how it ipacts respective parts of our business.
e have developed new online tools and awareness proraes to
ae sure that our people copl in their da-to-da activities where
the handle personal inforation. n addition to raisin awareness of
rivac b esin an approach to proects that prootes privac and
data protection copliance fro the start we have also deploed rivac
pact ssessent tools as part of the desin process around new
productsandservices.
ur focus on broader trainin and awareness will see a new data privac
odule which our people will need to coplete deploed with role-
specific scenarios for specific ob failies. s part of this bespoe approach
to anain the ris for the first tie we will have a odule desined
specificall for the contact centre environent to hihliht the diverse
nuber of responsibilities our contact centre people have when dealin
withcustoer data.