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GVC HOLDINGS PLC ANNUAL REPORT 2013 19 Risk description Potential impact Mitigation OPERATIONAL continued - Loss of major introducer of business - Poor sports results - Abnormal jackpot wins - Loss of major customer - Reliance on third party payment and multi-currency processing systems Reduction of revenue streams Lower or more volatile earnings Lower or more volatile earnings Lower earnings Lower earnings • Competitive revenue sharing models applied and monitored regularly. Key introducers are offered longterm revenue prospects with the Group • Sports represents around 50% of the Groups' NGR and sports results, are as a matter of policy not hedged as over the long-term they trend to the Group's expected margin percentage • Revenues from some business lines have a jackpot insurance scheme. Others do not have as a matter of policy • Highly diversified customer base with many thousands of customers across all its brands • Spreading of risk across a multitude of payment processors with varying deposit and withdrawal methods COMPETITION RISK - The market place becomes more competitive via new entrants or by more attractive products available from those or existing competitors Lower revenues • Constant monitoring of the competitive landscape • Working with third party software providers where possible to enhance product offering TECHNOLOGY RISK - The Group may be threatened by Denial of Service attacks or similar - Hosting platforms may suffer critical failure Temporary disruption of service, blackmail demands Temporary disruption of service, undermining of the confidence built with customers • Group has highly advanced preventive measures with world-class technology firms BUSINESS REVIEW