Experian 2010 Annual Report Download - page 39

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Introduction 2 – 11
Governance 52 – 84
Financial statements 85 – 160
Business review 12 – 51
Risk area Potential impact Mitigation strategies
Exposure to increasing
competition
The Group operates in a number of
geographic, product and service markets
that are highly competitive. Competitors
may develop products and services
that are superior to ours or that achieve
greater market acceptance than our
products and services which could
result in the loss of clients or reduction
in revenue. For further reading on
Experian’s market position please refer
to the business and market overview
section of this report.
The Group is committed to continued
research and investment in new data
sources, people, technology and
products to support its strategic plan.
Loss or infringement of
intellectual property rights
The Group’s success depends, in part,
upon proprietary technology and related
intellectual property rights. The extent to
which intellectual property rights can be
protected varies in different jurisdictions.
Third parties may claim that the Group
is infringing their intellectual property
rights or our intellectual property rights
could be infringed by third parties. If the
Group does not enforce our intellectual
property rights successfully, our
competitive position may suffer, which
could harm our operating results.
The Group, where appropriate and
feasible, relies upon a combination
of patent, copyright, trademark and
trade secret laws, as well as various
contractual restrictions, to protect our
proprietary technology and continues
to monitor this situation. The Group
also vigorously defends all third party
infringement claims.
Data centre security
breaches
The Group is highly dependent on
information technology networks
and systems to process, transmit and
store electronic information. Security
breaches of our data centres can create
system disruptions, shutdowns or
unauthorised disclosure of condential
information.
The Group’s data centres are protected
against physical break-ins. The Group
has strict standards, procedures and
training schemes for physical security.
Key aspects of the Experian risk management framework:
Dened and communicated business •
principles and strategies.
Clear Group objectives, supported •
by nancial and non-nancial key
performance indicators (KPIs).
Standardised process to identify, •
evaluate and manage signicant risks
on an ongoing basis.
Control reviews and follow-ups •
performed by management, internal
audit and third parties.
Budgetary controls and monthly •
performance reviews, including
achievement of objectives and KPIs.
Regional risk management •
committees with local oversight of risk
management processes.
Executive risk management committee •
with global oversight of risk
management processes.
Regular reporting on risk by senior •
management to the Audit Committee.
Audit Committee regular risk updates •
to the Board.
Related Group strategy:
– Drive protable growth
Related Group strategy:
– Focus on data and analytics
– Drive protable growth
Related Group strategy:
– Focus on data and analytics
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