Is the risk still risky when you see it coming?
Top risks in telecommunications 2019 Canada
Industry risks are evolving as telcos transform into adaptive digital enterprises. What are the most significant threats telcos face today?
The sector is preparing for exciting changes as new roles unlock for telcos. However, a number of challenges present themselves, from mounting capital expenditures and disruptive competition to changing customer and stakeholder expectations. Driven by customer demand and empowered by digital, telcos are rethinking – and in some cases reinventing – their services, business models and revenue streams.
While these changes are critical, so is the proactive mitigation of risks the changes bring. The list of risks we present here is not comprehensive, and by its nature it provides a high-level snapshot of the risks that we — and the industry as a whole — see at this time. Given this, we encourage you to read this report with an open and inquisitive attitude. Are these really the risks you face in your own business? If not, how and why are your organization’s risks different? And how do those particular risks impact your business? This report was produced using the insights of our highly experienced sector practitioners across the world, supplemented by research and analysis from the EY Global Telecommunications Center.
The evolving industry ecosystem presents many major opportunities for operators. However, each individual company’s ability to understand and manage the corresponding risks will be critical to identifying and seizing those opportunities. Unless an operator’s growth strategy has a solid underpinning of risk management, it will never be robust or sustainable. This publication aims to help operators build and reinforce that sound platform.
Snapshot of the top risks for Canadian telcos
- Ineffective growth and diversification strategy leads to connectivity commoditization.
- Underestimating changing imperatives in privacy and security erodes organizational trust.
- Impediments to scaling internal digital initiatives impact cost structures.
- Inadequate organizational agility is exacerbated by skill gaps and the struggle to attract talent.
- Inability to combat growing capex burden while still seeking ROI from infrastructure.
As the pace of technology introduction, disruption and customer choices continues to increase, so does telcos’ risk universe. As telcos formulate their strategies to target and occupy parts of the evolving system, they have to ensure that their understanding and management of risk to their business keeps pace while they navigate the most challenging yet exciting phase of the sector.