Experian 2008 Annual Report Download - page 36

34 Experian Annual Report 2008
Risks and uncertainties
Legislation or government regulations
may alter what data Experian can
collect and how it is collected
To the best of Experian’s knowledge,
the Group is in compliance with
data protection requirements
in the jurisdictions in which
it operates. Experian actively
monitors its collection and use of
personal data, while the Group’s
legal, regulatory and government
affairs departments work closely
with senior management to adopt
strategies to educate lawmakers and
influence the public policy debate,
where appropriate.
Technology
There could be security breaches of
Experian’s systems and processes or
its systems could fail
Experian’s data centres are protected
against damage from fire, power
loss, telecommunications failure,
natural disaster, hardware or software
malfunction, computer viruses or
other purposeful attacks, such as
physical break-ins or hacking. To
mitigate the risk from insecure or
unreliable IT systems, Experian
maintains off-site copies of all
information contained in databases
and runs back-up data centres.
The Group also has established
support arrangements with third
party vendors and strict standards,
procedures and training schemes
for technology services, physical
security, information security and
business continuity.
People
Experian is dependent upon highly
skilled personnel, especially its
senior management and other
experienced staff
Loss of these people could have an
adverse effect on the company’s
ability to deliver its corporate
objectives. Experian aims to provide
compensation and benefits that
are competitive with other leading
companies, as well as fulfilling
future career opportunities.
Other risks
There may be an economic downturn
in one or more of Experian’s major
markets, which impacts the demand
for consumer credit in particular
Experian is not immune from
economic risks in any of its markets.
However, the breadth of Experian’s
portfolio by product, by geography, by
sector and by client partly mitigates
the impact of this risk.
Experian could face increased
competition, especially in the credit
reporting industry
Experian mitigates this risk through
continued research and investment
in people, technology and products
as prioritised by its strategic plan.
Risks to Experian are anticipated
and regularly assessed and its
internal controls are enhanced
where necessary to ensure that such
risks are appropriately mitigated.
Experian has identified the following
major potential risks.
Data
The data that Experian holds
may be inappropriately used
Experian has established rigorous
information security policies,
standards, procedures, and
recruitment and training schemes,
which are embedded throughout its
business operations. Experian also
screens new third party partners
carefully and conducts targeted
audits on their operations. The
loss and/or potential misuse of
consumer data is addressed through
continued investment in IT security
infrastructure, including the significant
use of data and communications
encryption technology.
Experian’s vision is that its people, data and
technology become a necessary part of every
major consumer economy around the world. The
main potential risks to achieving this are either
specific to Experian’s business model, such as
information security, or more general, such as the
impact of competition.