Experian 2016 Annual Report Download - page 19

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Non-resilient IT/business environment 1 3 4 5 6
Risk trend Description Examples of control mitigation
Stable
Delivery of our products and services depends
on a number of key IT systems and processes
that expose our clients, consumers and
businesses to serious disruptions from
systems or operational failures.
• We maintain a significant level of redundant operations,
designed to avoid material and sustained disruptions to
our businesses, clients and consumers.
• We design applications with a focus on resilience and a
balance between longevity, sustainability and speed.
• We maintain a global integrated business continuity
framework that includes policies, procedures and controls
for Experian’s systems and related processes.
• We duplicate information in our databases and maintain
back-up data centres.
Potential impact Changes from 2015
A significant failure or interruption could have
a materially adverse effect on our business,
financial performance, financial condition and/
or reputation.
Whilst we experienced limited disruptions during the
financial year, isolated events including weather and power
disruptions tested our plans and processes. We continue to
perform periodic exercises to validate where possible that
our documented procedures are accurate and suitable for
each environment.
Undesirable investment outcomes 1 2 3 4 5 6
Risk trend Description Examples of control mitigation
Stable
We are investing in a number of high-quality
growth opportunities (for example in health,
fraud prevention, software and business credit)
and executing performance improvement
programmes (for example in Brazil and North
America Consumer Services), any of which
may not produce the desired financial or
operating results.
• We design our incentive programmes to optimise
shareholder value through delivery of balanced, sustainable
returns and a sound risk profile over the long term.
• We carry out comprehensive business reviews.
• We perform due diligence and post-investment reviews
on acquisitions and partnerships.
• We employ a rigorous capital allocation framework.
• We analyse competitive threats to our business model
and markets.
Potential impact Changes from 2015
• Failure to successfully implement our key
business strategies could have a materially
adverse effect on our ability to achieve our
revenue or growth targets.
• Poorly executed business acquisitions or
partnerships could result in material loss
of business, increased costs, reduced
revenue, substantial legal liability, regulatory
enforcement actions and/or significant harm
to our reputation.
We continue to take advantage of strategic partnerships,
such as with Fair Isaac, to differentiate our offering, and
invest in new technology that has returned our North
America Consumer Services business to growth.
Experian.com continues to deliver good growth and our
re-branded free service has now attracted over three million
members cumulatively. Experian Health in the USA continues
to develop and expand its capabilities from revenue cycle
management into areas such as fraud. We now place our
products in over 50% of USA hospitals. In Latin America, our
business in Brazil continues to perform well despite a difficult
economic backdrop. We also divested several non-core assets
during the year, to tighten the focus of the portfolio.
Strategic report •Principal risks – identifying and managing risk