Business review
GUS: risks and uncertainties
The Board of GUS believes that the following constitute areas that are key to the success of its business. Some, such as data security in Experian, are specific risks that require specific, identified actions to mitigate their impact. Others, such as the impact of changes in the economic environment, are areas that are addressed through strategic planning and operational management processes. The following summarises what it believes are the key risks to delivering successfully against GUS’ corporate objectives.
Economic environment
Changes to the economic environment can affect any of its businesses. For example, an improving economic climate increases consumer confidence, and with it the potential for our retail businesses as well as demand for consumer credit information. The reverse could also be true.
Staff retention
The success of its business is dependent, to a large extent, upon the efforts and abilities of key employees, particularly senior staff members. The policy of GUS is to provide senior staff members with compensation and benefits which are competitive with other leading companies, as well as to provide them with fulfilling opportunities for their future careers.
Acts of terrorism
Following recent events, GUS has placed greater emphasis on the potential risks to it posed by acts of terrorism and other unpredictable catastrophic events. It continues to reassess its exposure to these risks and develop disaster recovery plans.
Acquisition strategy
A key element of its strategy is to pursue strategic acquisitions of companies that have products, services and technologies or industry specialisations that extend or complement GUS businesses. The process of integrating acquired businesses may involve unforeseen difficulties and may require a disproportionate amount of the time and attention of management and our financial and other resources. We use both in-house expertise as well as that of professional advisors when undertaking such acquisitions.
Labour relations
Good relations with employees is essential to the efficiency and sustainability of its operations. This extends also to those employees of its suppliers and partners. GUS currently requires all suppliers to agree to comply with certain “best practice” guidelines developed by the Group with respect to employees and agents.
Business continuity
Plans to maintain business continuity in the event of potentially disruptive events are regularly updated and tested across the Group.