TomTom 2015 Annual Report Download - page 46

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MANAGEMENT BOARD REPORT
TOMTOM / ANNUAL REPORT AND ACCOUNTS 2015 / 45
OPERATIONAL RISKS
INABILITY TO ATTRACT, DEVELOP AND RETAIN TALENT
Our markets are characterised by rapid technological change,
which challenges us to deliver highly competitive products and
services on an ongoing basis. In order to be a market leader in
our industry, we need to have the most talented people working
effectively together.
We aim to employ highly talented people in our organisation.
Having the best people enables us to create and deliver highly
innovative products and services to our customers. If we are
unable to attract, develop and retain the right people, our ability
to operate our business successfully could be significantly
impaired.
RISK RESPONSE
In our ambition to be the employer of choice in technology, our
rigorous recruitment process aims to attract the best talents. We
monitor the organisational health of the company and have
programmes in place to retain and keep key employees engaged.
Ongoing significant investments are made in understanding
what our employees need and want so we can offer customised
experiences. We invest in our increasingly agile and talented
workforce and in ensuring that we have the right employer
brand strategy in place to attract and retain the talent we need.
For example, we continuously invest in and develop our software
engineering and product management capabilities through
initiatives such as our World Class Software Development
Programme.
UNAVAILABILITY OF ONLINE SERVICES
We provide a variety customer-facing online services on a 24/7
basis. These include fleet management services, live traffic
information, location-based services and sales via our website. To
provide these services to our customers we rely on our own, as
well as outsourced, information technology, tele-
communications and other infrastructure systems. A significant
disruption to the availability of these systems could cause
interruptions in our service to customers that may cause
reputational damage for TomTom and could trigger contractual
penalties, which could have a material adverse effect on our
financial condition and results of operations.
RISK RESPONSE
We have established a process in relation to Business Continuity
for internal infrastructure including full redundancy for key
services such as fleet management, location-based services and
some traffic delivery platforms. We also agreed minimum
service levels with relevant outsourced service providers.
Continuous monitoring of system availability is in place.
FAILURE TO RECOVER FROM A DISASTER
Unforeseen business disruptions could affect our service to
customers and cause loss of, or delays in TomTom's critical
business systems, our research and development work and/or
product shipments. Any permanent or temporary loss of these
systems would result in reputational damage, loss of revenue
and liabilities to our clients. In the case of a catastrophic disaster,
our company's success rests on our ability to restore our critical
data and rebuild our IT business systems.
RISK RESPONSE
We have business continuity and disaster recovery planning in
place for business critical systems and various eventualities.
However, we are unable to plan for every possible disaster or
incident. A major failure of a business critical system from which
we are not able to quickly recover, could have a material adverse
effect on our financial condition, results of operations and
liquidity.