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Annual Report & Accounts 2014 - PRINCIPAL RISKS AND UNCERTAINTIES
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ANNUAL REPORT 2014 18 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 group's 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