RWS AR 23 Final Single pages - Flipbook - Page 47
Risk category
Description
Mitigation
EXTERNAL ENVIRONMENT
Climate change and
natural disasters
RWS is facing an increased focus on
disclosure of climate-related risks and
opportunities, as well as increasing
requirements from our clients and people to
demonstrate carbon reduction. The Group
is also exposed to natural disasters arising
from extreme weather conditions resulting
from climate change in a few locations.
Failure to address this could have signi昀椀cant
昀椀nancial and reputational impact.
The Group is monitoring regulatory
developments, complying with reporting
requirements, building climate-related impact
resilience into its business strategy including
investing in its IT infrastructure, developing
carbon reduction plans (including setting
science-based targets), and improving the
resilience and business continuity of its o昀케ce
network and supply chain.
Competitive Risk
RWS is facing increased competitive
intensity in the technology space and from
potential new AI based competitors with
di昀昀erent sources of funding, objectives,
timescales, culture and competitive stance.
Competitive intensity could be further
impacted by decreasing barriers to entry
and disintermediation where, for example,
clients become competitors.
There is continuous review of available
technology, AI, possible disruptions and the
competitive risks facing RWS. We also scan
technology/AI developments to identify and
manage potential threats and to counter these
by incorporating leading edge technology
in our solutions. There is a structured client
engagement programme in place to counter
competitive threats.
Geopolitical
The Group is exposed to heightened global
geopolitical uncertainty, for example in East
Asia and the war in Ukraine. The risk could
lead to changes in demand, growth rates
and attractiveness of clients and markets,
and have an impact on the geographical
focus of the Group and the cost of doing
business.
The Group monitors the changing global
situation and is alert to any relevant changes.
It can then take action by reallocating work
where relevant across its global infrastructure
and ensuring the safety of its people. The
Group re昀氀ects changes to the geopolitical risk
in its budgeting, investments, planning and
decision-making.
MAPPING OUR RISK
The Group categorises risks according to the likelihood
of occurrence and the potential impact on the Group.
Impact is assessed on 昀椀nancial grounds. Financial impact
in the period could be increased costs, reduced revenue,
昀椀nes or increased management time required to deliver a
given activity.
The Directors have also assessed the risks on a gross
basis (i.e. without existing mitigations) and a net basis (i.e.
with existing mitigations).
STRATEGIC REPORT
RWS Holdings plc — Annual Report 2023
47
