Experian 2010 Annual Report Download - page 37

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Introduction 2 – 11
Governance 52 – 84
Financial statements 85 – 160
Business review 12 – 51
Risk area Potential impact Mitigation strategies
The Group’s ability to provide reliable
services largely depends on the efcient
and uninterrupted operation of our
computer network systems, data and call
centres, as well as maintaining sufcient
stafng levels. System or network
interruptions, or the unavailability of
key staff or management resulting from
a pandemic outbreak, could delay and
disrupt our ability to develop, deliver
or maintain our products and services,
causing harm to our business and
reputation and resulting in loss of
customers or revenue.
Comprehensive business continuity
plans and incident management
programmes are maintained to minimise
business and operational disruptions
including pandemic incidents. The
Group maintains full duplication of all
information contained in databases
and runs back-up data centres. Support
arrangements have been established
with third party vendors and there are
strict standards, procedures and training
schemes for business continuity. The
Group also monitors potential pandemic
threats and adjusts action plans.
The Group’s businesses must comply
with federal, regional, provincial, state
and other jurisdictional regulations and
best practice, including privacy and
information security laws.
To the best of Experian’s knowledge,
the Group is in compliance with data
protection requirements in each
jurisdiction in which it operates.
The Group’s regulatory compliance
departments work closely with the
businesses to adopt strategies to help
ensure compliance with jurisdictional
regulations and identied business
ethics which includes active monitoring
of its collection and use of personal data.
The Group’s legal, regulatory and
government affairs departments work
closely with senior management to
adopt strategies to educate lawmakers,
regulators, consumer and privacy
advocates, and other stakeholders to
support the public policy debate, where
appropriate. This includes advocating
and promoting new industry self-
regulatory standards, when appropriate,
to address consumer concerns about
privacy and information sharing.
Changes in the legislative, regulatory and
judicial environment in the countries in
which the Group operates may adversely
affect our ability to collect, manage,
aggregate, use, exchange and sell data.
Proposed US nancial services reforms
and potential amendments to the Fair
Credit Reporting Act (FCRA) could
impact the Group’s operating results. For
example, the Federal Trade Commission
(FTC) issued nal rules in February
2010 regarding disclosure requirements
for the advertising of free credit report
offers. In addition, the Group is subject
to changes in specic countries’ tax
laws. Our future effective tax rates could
be adversely affected by changes in tax
laws.
The ability of the Group to meet the
demands of the market and compete
effectively with other IT suppliers is,
to a large extent, dependent on the
skills, experience and performance
of its personnel. Demand is high for
individuals with appropriate knowledge
and experience in the IT and business
services market. The inability to attract,
motivate or retain key talent could have
a serious consequence on the Group’s
ability to service client commitments and
grow our business. Please refer to the
business and market overview section of
this report for further information on how
people are a key resource at Experian.
Effective recruitment programmes are
ongoing across all business areas, as
well as personal and career development
initiatives. Talent identication and
development programmes have been
implemented and are reviewed annually.
Compensation and benets programmes
are competitive and also regularly
reviewed.
Dependence on recruitment
and retention of highly
skilled personnel
Related Group strategy:
– Focus on data and analytics
– Drive protable growth
Interruptions in business
processes or systems
Regulatory compliance
Exposure to legislation or
regulatory reforms
Related Group strategy:
– Focus on data and analytics
Related Group strategy:
– Focus on data and analytics
Related Group strategy:
– Optimise capital efciency
– Drive protable growth
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