Peachtree 2012 Annual Report Download - page 43

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Change management Intellectual property
Our strategy has sought to focus the business and appropriately
prioritise resources. Given new business priorities, there are risks
associated with the change management impact on employees,
systems and the alignment of talent with prioritised business areas.
In addition, while Sage operates in a decentralised culture, with
many different operating companies across the globe, there is a risk,
as with any other business, relating to key man dependencies
and loss of key management.
Sage relies on intellectual property laws, including laws on
copyright, patents, trade secrets and trademarks, to protect
our products. Despite laws and regulations being in place,
unauthorised copies of software still exist. The internet
provides new methods for illegal copying of the technology
used in Sage’s products and services.
Risk
If the change management implications of resource prioritisation are
not identied and managed, talent and resources key to successful
strategic delivery could be lost. Loss of key knowledge or personnel,
or failure to update systems to respond to changing business
priorities could result in an inability for Sage to operate effectively
and maintain a competitive edge. Loss of key management could
result in important, sensitive information leaving the Group.
Illegal or unauthorised copies of Sage’s software could be
sold without our knowledge, impacting nancial results and
Sage’s reputation.
Potential
impact
A change management programme including a talent review
and systems requirements review is in place to ensure change
management implications are addressed. Sage has detailed key
man dependency identication processes and detailed succession
planning processes in place to mitigate against the risk of loss of
key personnel.
While relying, as other companies do, on the laws and
regulations in existence, Sage continually polices the
unauthorised use of its products. Sage also ensures the
secure storage of source code throughout the Group.
Mitigation
process
The processes to identify and manage the principal
risks to the success of the Group are an integral part
of the internal control environment.
Internal control and risk management
To see how our internal control and risk management processes and
responsibilities work, see our Corporate governance report.
More information on page 57
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Principal risks
Overview
Performance
GovernanceFinancial statements
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The Sage Group plc | Annual Report & Accounts 2012