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BLUE LABEL INTEGRATED ANNUAL REPORT 2015
UNDERSTANDING MATERIAL MATTERS
CONTINUED
Risk
Context
Mitigating factors
Non-
compliance
with legislation
Non-compliance with
legislation applicable to the
Group could lead to fines
and negative reputational
impact, i.e. POPI, CPA,
WASPA legislation,
Companies Act, Income Tax
Act, Value Added Tax Act,
JSE Listings Requirements,
OHSA, BEE Act, Employment
Equity Act, industry charters
and scorecards.
Legislation that affects the Group is identified,
analysed and categorised according to its impact
and relevance. The process is ongoing to test and
ensure ongoing compliance on an operational level.
Ability to
attract and
retain skilled
resources
The Group’s future
performance will depend
largely on the efforts and
abilities of its key personnel
and employees. The existing
Group Executive
Management pioneered the
mass prepaid market and
established the Group’s
business model. The Group’s
future success will depend,
in part, upon its ability to
continue to attract, retain,
motivate and reward
personnel, including
executive officers and certain
other key and specialised
employees.
The joint CEOs and co-founders are both substantial
shareholders and are passionate about and
dedicated to the sustainability and growth of
the Group.
Key members of the management team are bound
by service and restraint agreements and in most
instances are shareholders of Blue Label via the
Forfeitable Share Scheme. Executive Management
has implemented talent management and
succession planning in key areas of the Group.
Appropriate skills transfer activities are ongoing
through on the job and other training programmes.
The RNC has approved remuneration policies which
include long-term retention benefits and short-term
incentives. In addition, key components of the
Group’s remuneration policy have been adjusted to
focus on retention.
Increasing
exposure to
issues such as
data security,
breaches in
technology
security or
privacy
As the bulk of the Group’s
inventory is of a virtual
nature, defence against
cybercrime is a top priority,
as susceptibility to hacking
and the penetration of
firewalls are always matters
of extreme concern.
The Group is dependent on the systems and
platforms that it utilises to deliver its products and
services, as well as to manage its merchant base. In
recent years, technology spend has been increasing
in recognition of this key imperative, in order to
support not only organic and acquisitive growth in
the business (and the concomitant rise in the
number and type of transactions processed), but
also to improve system availability and resilience.
This invariably includes a major focus on the security
of all systems, both production and enterprise, in
order to suitably detect and manage security
threats, as well as the ability to recover from
collateral damage that may be caused as a result
of cyber security breaches.