Annual Report & Accounts 2015 - PRINCIPAL RISKS AND UNCERTAINTIES
there are a number of potential risks and uncertainties which could have a material impact on the Group's
future performance. to mitigate against these risks, the Group conducts a continuous process of assessments
that examine whether any risk has increased, decreased or become obsolete; identify new risks; and evaluate
the likelihood of each risk occurring and the impact it would have on the Group.
the key risks and how we seek to manage them are set out below:
Risks and uncertainties Mitigation
the Group may be threatened by Denial of
service attacks or similar.
natural or man-made disasters may affect
continuity of operations, undermining player
with technological advances and continuous
shifts in how consumers access our services,
maintaining and improving technology may
become more complex.
following the acquisition of bwin.party, the Group
is undertaking a significant technology platform
migration, which carries a project risk.
the Group has highly advanced preventative
measures with world-class technology firms.
Disaster recovery and business continuity solutions
are in place and tested regularly.
focus on developing customer experience, for
example through an expanded mobile offering.
Close monitoring by management; reporting up to
the Board regularly.
Conflict between jurisdictions in which the
customer resides and where the service is
provided; risk of enforcement action.
in some markets regulation is not clearly defined
or adopted; there may be changes in regulation in
strict adherence to the laws of the jurisdiction in
which the service is provided and the rules and
protocols in nationally regulated markets.
Close monitoring of regulatory developments and
assessment of their longer term impact.
maintenance of a diversified product portfolio.
imposition of additional gaming or other indirect
transfer pricing between group entities could be
challenged by the tax authorities.
Changes in vat rules within the eu impacting the
may not be possible to mitigate. however,
payment of additional taxes may create
opportunities to work with governments and gain
intra-group transactions are documented and take
place on commercial terms.
regular review of all tax arrangements and
update transfer pricing when required.
monitor the situation, as significant uncertainty
Conditions in the eurozone remain challenging
and this may erode customer base confidence
and spending power.
foreign exchange movements; risk of certain
countries exiting the euro.
Customer retention programmes.
Broader geographic spread of products.
the Group tries to match its income and cost
exposures to create a natural hedge.
regular evaluation of low cost hedging
wherever practical, financial assets held within
certain countries are limited so they do not exceed
the financial liabilities in that jurisdiction.
PRinciPAL RisKs AnD UnceRtAinties
GVC HOLDINGS PLC ANNUAL REPORT 2015