Experian 2015 Annual Report Download - page 20

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Protecting our business continued
Principal risks What is the risk? How would the risk
impact our business?
What
strategic
initiatives
could the
risk impact?
What
performance
indicators
would the
risk impact?
Material regulatory
enforcement actions and
adverse litigation claims
• Litigation and regulatory actions may
result from our business operations under
privacy, permissible purpose, consumer
protection or other laws or regulations
including in the form of class actions
• An adverse outcome in a
claim could result in civil or
criminal penalties, as well as
negative publicity that harms
our reputation
F, D, S, O EBIT
Increasing competition • New or existing competitors may develop
products and services that are superior to
ours, or achieve greater market acceptance
• New or existing competitors may be able
to sell products at lower prices than ours
by accepting lower margins or because
they benefit from proprietary ownership
of data, technological superiority or
economies of scale
• Price reductions may reduce
our margins, market share and
results of operations, and harm
our ability to obtain new clients
or retain existing ones
• We might be unable to support
changes in the way our
businesses and clients use
and purchase information,
affecting our operating results
F, D, S, R EBIT, ROCE and
organic revenue
growth
Data ownership, access
and integrity
• How we collect, aggregate, analyse and use
consumer and client information could be
changed or restricted, based on consumer
privacy and data accuracy concerns
• Our data providers could be unable to
provide their data to us, withdraw the data
or impose a different fee structure for using
the data
• Our ability to provide products
and services to our clients
could be affected, leading to
a materially adverse effect on
our business, reputation and
operating results
F, D, S, O EBIT
Dependency on highly
skilled personnel
• We may be unable to attract, motivate
or retain key talent, or to hire and
retain personnel at reasonable
compensation levels
• Our competitors may offer more attractive
employment terms and seek to hire our
highly talented personnel
• Not having the right people
could materially affect our
ability to service our clients
and grow our business
F, D, S, O Employee
engagement
Non-resilient or
non-agile IT environment
• Advances in technology may result in
rapidly changing consumer and client
preferences for products, services and
delivery formats that we may not be able
to support
• Our systems, personnel and operations
could be exposed to damage, interruption
and pandemic outbreaks
• If we cannot quickly adapt
our products, services or
delivery formats to the way our
businesses and clients use
and purchase information, it
could result in material loss of
business or increased costs
• Any significant failure or
interruption could have a
materially adverse effect
on our business, financial
performance, financial
condition or reputation
F, D, S, O. R EBIT and ROCE
18 Protecting our businessStrategic report •