Peachtree 2013 Annual Report Download - page 49

Risk Potential impact Principal mitigations
Technology transformation
There is a risk that we do not successfully
transform our business in relation to
technology initiatives by failing to achieve
targets and milestones, and meet our
strategic timetable.
– We do not meet market expectations or
compete effectively with rival providers;
– Negative impact on future revenue and damage
to future growth potential;
– Loss of existing customers and inability
to attract new customers; and
– Negative reputational impact.
– Individual initiatives are monitored by the
Group Executive Committee and Group Project
Management Office (“PMO”). Targets, milestones
and timelines are tracked and progress is regularly
reported and reviewed;
– Strategic opportunities are regularly reviewed
by the Group Board; and
– The Technology Advisory Group reviews specific
key technology initiatives on a regular basis.
Online solutions
There is a risk that we do not
provide highly-available and secure
online solutions.
– Negative reputational impact;
– Data breach, corruption, or loss, leading to
potential regulatory penalties or financial loss;
– Negative impact on current and future revenue
and damage to future growth potential; and
– Loss of existing customers and inability
to attract new customers.
– Detailed product and services release and quality
control procedures;
– Thorough quality assurance processes and
initiatives relating to the level of service provided
to customers;
– Detailed framework to control the risks associated
with the provision of online services and the
protection of data; and
– Ongoing monitoring of availability and security
incidents for online solutions.
Resource allocation
There is a risk that we do not appropriately
allocate resources to key priorities and do
not balance short-term delivery needs with
long-term business objectives.
– Short-term financial results, including budgets
and KPIs, are not achieved; and
– Strategic initiatives are not completed and
our potential is not realised.
– Detailed business planning and budget processes
to allocate resource and review results on a
regular basis.
Pricing initiatives
There is a risk that we do not complete
the pricing initiatives to deliver expected
benefits within the agreed timescales.
– Negative impact on future growth potential; and
– Strategic initiatives are not completed and our
potential is not realised.
– Individual initiatives are monitored by the Group
Executive Committee and Group PMO. Targets,
milestones and timelines are tracked and progress
is regularly reported and reviewed; and
– Recruitment of pricing strategists throughout
the Group.
Regulatory and compliance failure
There is a risk that we suffer a significant
compliance or regulatory failure, or that
we do not have appropriate governance,
decision making, or delegation of
authorities in place.
– Negative reputational impact;
– Data breach, corruption, or loss leading to
potential regulatory penalties or financial loss;
– Impact on current and future revenues and
damage to future growth potential;
– Loss of existing customers and inability
to attract new customers; and
– Loss of shareholder confidence.
– Group-wide compliance programme which seeks
to ensure that all local, national and international
regulatory and compliance requirements are
identified and complied with.
Traditional products
There is a risk that we suffer a major
quality issue with a significant traditional,
on-premise product.
– Negative reputational impact;
– Impact on current and future revenues and
damage to future growth potential; and
– Loss of existing customers and inability
to attract new customers.
– Detailed product and services release and quality
control procedures; and
– Thorough quality assurance processes and
initiatives relating to the level of service provided
to customers.
Source code and intellectual property
There is a risk that we do not
appropriately protect our source code
and intellectual property.
– Unauthorised copies of our software,
leading to loss of revenue and/or customers;
– Negative reputational impact; and
– Impact on current and future revenues and
damage to future growth potential.
– Continual policing of unauthorised use
of our products;
– Secure storage and protection of source
code and intellectual property throughout
the Group; and
– Reliance on laws and regulations.
Change management
With new business priorities, there are
risks associated with the change
management impact on employees,
systems and the alignment of talent
with prioritised business areas.
– Loss of talent and resources key to successful
strategic delivery;
– Inability to operate effectively and maintain
a competitive edge; and
– Loss of sensitive information and knowledge.
– Change management programme, including
talent review and systems requirements
review; and
– Key man dependency and succession
planning processes.
47The Sage Group plc | Annual Report & Accounts 2013
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