RWS Annual Report 2022 web - Flipbook - Page 45
Risk Category
Description
Mitigation
Loss of a key
client
Being a global leader in localisation, the Group has
a number of key clients who are themselves global
leaders. These clients are typically supported by
dedicated teams, which are located globally. Any
failure with regard to service, or breakdown in
relationship, could impact our revenue with these
clients. We are also at risk from disintermediation and
the performance of the sectors our clients operate in.
The Group maintains close relationships at senior level;
runs a key account programme; undertakes monthly
tracking of performance; uses formal independent
measuring of client satisfaction (e.g. Net Promoter Score);
and maintains open channels of communication to
anticipate client needs.
Geopolitical
The Group is exposed to heightened global
geopolitical uncertainty, for example in East Asia and
the war in Ukraine, as well as political uncertainty in
the UK. 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.
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 quality of service provided by RWS is
fundamentally derived from the quality of our people
and the freelance network that we have access to. Our
performance could therefore be adversely affected
if we, or our vendors, are unable to recruit, train and
retain key talent within and outside the Group. We are
also exposed to wage inflation and talent shortage in
key areas which is fuelling the 'war for talent'.
RWS has a compelling proposition for future employees:
a fast-moving growing sector; strong processes around
salary structure, bonuses, LTIP and career planning;
a positive culture, clear purpose and values; strong
communications; and focus on ESG. The Group also
plans for succession at senior levels.
Cyber security
RWS may be adversely affected by activities such as
systems intrusions, denial of service attacks, virus
spreading and phishing. The cyber threat level is
increasing and successful attacks could also lead to
data loss and adverse reputational impacts.
The Group operates a network of systems to act as
barriers to outside attacks. It has data and systems
recovery procedures, business continuity planning,
uses third-party penetration testing, conducts cyber
training for colleagues, and holds an appropriate level of
cybercrime insurance.
Failure of a
business-critical
partner, supplier
or national
infrastructure
Failure of a business-critical partner or supplier,
or critical infrastructure could result in RWS being
unable to deliver to clients and/or perform to the
required standard.
RWS avoids reliance on a single supplier / critical partner
where possible. It leverages Quarterly Business Reviews
to evaluate relationships and manage risk, has business
continuity plans in place, and maintains appropriate backup in relation to national infrastructure threats where
possible. Active monitoring of hot spots ensures the
safety of employees and the management of continuity
of service.
Failure to deliver
transformation
programme
The Group is executing an ambitious transformation
programme, which affects large parts of its core
systems and processes. The Group would be exposed
if the implementation does not deliver the planned
benefits to time, plan and cost.
The Group has a structured programme to update and
report on progress of each of its key initiatives. Risks are
reduced by ensuring the appropriate quality and quantity
of resource is provided to each activity. To the extent that
issues arise, these are identified early and appropriate
remedial action taken.
COLLEAGUES
PEOPLE
Failure to
attract, engage
and retain key
talent
OPERATIONAL
STRATEGIC REPORT RWS — Annual Report 2022
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