Experian 2015 Annual Report Download - page 23

21Strategic report •Protecting our business
How do we
manage the risk?
How has the
risk changed
since 2014?
What is the risk’s
status for 2015?
• We comprehensively review our business activities and
formulate strategic plans, including rationalisation where
necessary, that address both the opportunities and
challenges of the next five years. As a result, we sometimes
withdraw from low-growth or low-return markets
• We rigorously assess all acquisitions and partnerships,
using both in-house experts and professional advisers
• We conduct extensive post-acquisition and organic investment
reviews, to ensure performance remains consistent with the
business plan
The risk has
remained stable
We hold leading positions in most of our markets and have
a number of high-quality growth opportunities. That said, we
have some areas to improve, since growth has moderated in
some of our businesses for a number of reasons. We continue
to take advantage of strategic partnerships such as with Fair
Isaac (FICO), to develop innovative services that differentiate
us from our competitors. We are integrating features delivered
to us through our earlier 41st Parameter and Passport Health
Communications acquisitions, to create and expand our global
capabilities. For further information please refer to the Our
strategy section of the Strategic report
• We have a diverse portfolio by geography, product,
sector and client
• We have counter-cyclical products and services
• We enter into forward foreign exchange contracts to protect
the US dollar value of certain assets and for certain future
commercial transactions
• We convert cash balances which accumulate in foreign
currencies into US dollars
• We retain internal and external tax professionals, who regularly
monitor developments in international tax and assess the
impact of changes and differing outcomes
Increasing risk,
driven in part
by political
and economic
volatility, continued
development
of complex tax
laws globally and
hardening of
interpretation of
existing tax laws
We continue to mitigate our exposure to the unpredictability
of financial markets through geographic diversification and
currency hedging strategies. Cyclical economic weakness in
Brazil has contributed to a slowdown in organic growth during
2015 and to currency devaluation. Latin America accounted for
17.8% of our revenue (2014: 19.5%)
A number of countries and bodies are developing tax laws which
bring heightened uncertainty of both the settlement of historic
tax filings and the future tax position of the Group
• We have a Global Code of Conduct, and Anti-Corruption
and Gifts and Hospitality policies, which ensure our people
understand the behaviours we expect from them
• In the USA, we continue to update our operating standards to
ensure we place consumers at the heart of what we do
• In the UK, we continue to develop our definition and standard
of conduct risk, within the context of the Financial Conduct
Authority’s (‘FCA’) definition. This involves building out and
embedding a new framework for conduct risk management in
preparation for possible future FCA regulatory examinations
New principal
risk as a result
of changing
regulatory
environment
Regulators are increasingly putting public trust and consumer
and investor protection at the centre of their mission statements
by promoting prudent conduct risk management. In the UK, the
FCA expects we will be able to demonstrate a comprehensive
conduct risk management framework as of 1 April 2016. This
necessitates a more holistic approach to how we organise
ourselves and do business in the UK, to ensure good client
outcomes and fair treatment of consumers
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