Lenovo 2015 Annual Report Download - page 26
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24 Lenovo Group Limited 2014/15 Annual Report
MANAGEMENT’S DISCUSSION & ANALYSIS
Risk Description Key Risk Mitigations
Cyber Attack and Security Risk
The Group could be impacted negatively if we sustain
cyber-attacks and other data security breaches that
disrupt our operations or damage our reputation.
We manage and store various proprietary information
and sensitive or confidential data relating to our
operations. In addition, our cloud computing business
routinely processes, stores and transmits large amounts
of data for our customers, including sensitive and
personally identifiable information. We may be subject
to attack from hackers and other malicious software
programs that attempt to penetrate our networks and
exploit any security vulnerability in our system and
products.
Sophisticated hardware and operating system software
and applications that we produce or procure from third
parties may contain “bugs” that could unexpectedly
interfere with the operation of the system or may present
unidentified security risk.
Breaches of our security measures and misappropriation
of proprietary information, sensitive or confidential data
about us and our customers could lead us to loss of
reputation, disruption in business operations, exposure
to potential litigation and liability and result in a loss of
revenue and increased cost.
The Group will continue to maintain a significant investment
in enhancing IT security and security information
awareness.
Integration Risk
The Group has experienced growth and expansion through
acquisitions. Targets may be large and complex.
We may face risks and challenges in managing the
integration of business models, products and services, IT
infrastructure, operations, culture and employees.
The benefits of these acquisitions may not be realized as
quickly and as efficiently if there is difficulty in integrating
them.
The diversion of management attention to integration issues
encountered could adversely affect the Group’s business.
Integration risk is considered at an early stage as part of the
review of acquisition opportunities and integration planning
takes place before completion of the acquisition.
Post-acquisition stabilization support, reviews and issue
resolution procedures have been established.
The Group has good track record in and experience of
integrating acquisitions of both large and small targets.