Vodafone 2015 Annual Report Download - page 39

Operational risk
9. Superior customer experience
Risk description Assessment Mitigation
We operate in highly competitive
markets and failure to deliver
a differentiated and superior
experience to our customers
in store, online and on the
phone, could diminish our brand
and reputation, and leave
us vulnerable to aggressive
pricing from competitors
and potentially a weakened
relationship with our customers.
This risk is relevant to all our
markets, and particularly
to our consumer business.
Differentiating based on a superior
customer experience will involve
a number of areas.
a Clear and transparent
communication with all
our customers
a Managing roaming charges
and bill shocks
a Delivering clear,
understandable tariffs
a Suitable complaint handling
a Providing a leading online and
app customer experience
a Customer experience has been prioritised as a key component of our strategy. The Chief
of Staff, supported by a programme ofce, is leading a programme to improve customer
experience related activities across Vodafone
a We have detailed plans in place across the business to deliver a range of system and capability
improvements to support an enhanced customer experience
a We track and monitor our performance in delivering a superior customer experience through
a range of KPIs; the most critical being our NPS and Brand Consideration metrics
a We have restructured our incentivisation programme to strengthen the importance of key
customer experience related metrics
Operational risk
10. Network/IT infrastructure failure
Risk description Assessment Mitigation
We are dependent on the
continued operation of our
networks. Multiple network
or IT infrastructure failures
(caused by non-malicious
means including end of life
failure, natural disasters and
weather-related failures)
may result in voice, video or data
transmissions being signicantly
interrupted. This could result
in serious damage to our
reputation, a consequential
customer and revenue loss and
the risk of nancial penalties.
This risk is possible in all markets
in which we operate and has
the potential for signicant
impact. For the majority of such
network and IT infrastructure
failures, the associated impacts
would be conned to a single
market. There are however some
exceptions where data centres
and critical network sites serve
multiple markets.
a Specic back-up and resilience policy and requirements are built into our networks and
IT infrastructure. Conformance with these requirements is monitored continually
a We monitor our ability to replace strategic equipment quickly in the event of end-of-life
or failure, and for high risk components, we maintain dedicated back-up equipment ready
for use
a Network and IT contingency plans are linked with our business continuity and disaster
recovery plans which are in place to cover the residual risks that cannot be mitigated
a A crisis management team and escalation processes are in place both nationally and
internationally. Crisis simulations are conducted annually
Relative movement within Group principal risks:
New
Relative movement within Group principal risks:
Decreased
Strengthening our risk management approach
Vodafone is in the process of making
a number of changes aimed at strengthening
its Enterprise risk management.
These include:
a transferring responsibility for risk from the Group
Audit Director to the Group Compliance Director
(now Group Risk and Compliance Director);
a creating a new Head of Risk role to report to the
Group Risk and Compliance Director;
a amending the terms of reference of the former
Policy and Compliance Committee to make
it a Risk and Compliance Committee;
a improving accountability for, and tracking of,
principal risks across functions and local markets;
a ensuring our global risk community is better
connected and therefore better placed to share
best practices; and
a developing an integrated assurance plan to help
identify any gaps and overlaps in the management
of our principal risks across the “three lines
of defence” in accordance with best practice
risk management.
Overview Strategy review Performance Governance Financials Additional information Vodafone Group Plc
Annual Report 2015
37