Carphone Warehouse 2016 Annual Report Download - page 23

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Dixons Carphone plc Annual Report and Accounts 2015/16
Strategic Report
21
Example mitigating actions and related strategic priorities
Example mitigating actions Change in risk in 2015/16
• Multi-year commercial agreements are in place with all the major MNOs, which closely align interests
and drive value for both parties
• Continuing to leverage the scale of operations to strengthen relationships with key suppliers and
maintain a good supply of scarce products
This risk has remained stable
over 2015/16
• Strategic and business planning takes into account varying economic scenarios, with ongoing
monitoring by finance and senior executives
• Close scrutiny of product performance, trading results, competitor activity and market share
• Use of customer insight / advocacy to monitor success of initiatives and actions
• Continued focus on driving cost improvements through cost-efficiency initiatives
• Ongoing evolution of our multi-channel proposition
• Differentiation from competitors through strategic partner relationships, innovative propositions, and
high quality customer service
• Working to leverage expertise and scale to build partnerships with other retailers and businesses
through Connected World Services
• Development of consumer services
This risk is unchanged as the nature
and challenges in our business
environment are consistent with
the prior year
• A number of exit scenarios have been modelled in order to understand and mitigate the potential
impact on the Group’s business
• Review of local funding arrangements including factoring of debtor receivables
• Reduction in credit risk exposure by tightening control over customer credit arrangements
The threat of imminent Grexit has
been averted. Political instability and
economic uncertainty remain in
Greece but the situation is perceived
to be stabilising and our local
business continues to perform well.
This risk has decreased in likelihood
but will remain on our risk register
under a watching brief
• Significant investment being made in IT systems and infrastructure across the Group, supported by
rigorous testing processes
• Post-merger IT transformation to align IT infrastructure to future needs of the business
• Individual system recovery plans in place in the event of failure which are tested regularly, with full
recovery infrastructure available for critical systems
• Long-term partnerships with ‘tier 1’ application and infrastructure providers established
This risk has remained stable
over 2015/16
• Implementation of a UK&I Information Security Improvement Plan
• Investment in information security safeguards, IT security controls, monitoring, in-house expertise
and resources
• Committee comprising senior management in UK&I, set up with responsibility for oversight,
co-ordination and monitoring of information security policy and risk
• Recruitment of a Chief Information Security Officer
• Ongoing training and awareness programmes for employees
• Ongoing programme of penetration testing
Our overall information security
position has been hardened in
response to increases in external
threats. We continue to undertake
significant management effort and
investment to reduce this risk
exposure
00_DC 2016 Annual Report.pdf 21 11/07/2016 18:34