EY - Top 10 risks in telecommunications 2014

Top 10 risks in telecommunications 2014

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About this report

As the increasingly diffuse yet interdependent ecosystem of telecoms, technology and media continues to evolve, the risk universe for communications operators is changing rapidly. As they formulate and execute their strategies to target and occupy parts of this ecosystem, operators have to ensure that their understanding and management of the risk to their business keeps pace.

To help companies gain and apply the necessary risk insights, our Global Telecommunications Center has developed Top 10 risks in telecommunications 2014. This is the latest in our ongoing series of periodic reports designed to pinpoint the most critical risk issues in the sector, analyze the industry’s evolving responses, and highlight elements of emerging best practices in addressing these risks.

As in previous reports, we do not claim that the list of risks we present here is comprehensive. Also, by its nature, it can provide only a generalized snapshot of the risks that we — and the industry as a whole — see at this time.

During the process of compiling the report, our professionals were asked to take two steps: first, evaluate the most important strategic challenges for global businesses in their industry; and second, rate the severity of these risks for their sector. This study reflects the findings from our telecoms sector practitioners.

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.

The EY risk radar 2014 – telecommunications

The EY risk radar presents a snapshot of the top 10 business risks in an industry sector by dividing risks into four quadrants that correspond to EY’s Risk Universe™ model. These quadrants are:

  • Compliance threats - originating in politics, law, regulation or corporate governance
  • Operational threats - impacting the processes, systems, people and overall value chain of a business
  • Strategic threats - related to customers, competitors and investors
  • Financial threats - stemming from volatility in the markets and in the real economy

The radar below plots the top 10 risks for telecoms operators on the 2014 risk radar and lists the risks that are currently just “below the radar.”

EY - Top 10 risks in telecommunications 2014