Security management best practices, risk & governance 00 2021- distance Written Assignment Semester Student Number: 402101420
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SECURITY MANAGEMENT BEST PRACTICES, RISK & GOVERNANCE 600 2021- Distance - Written Assignment 2 Semester 1 Student Number: 402101420 Question One Company: MTN Group SWOT and PESTLE The company was founded in 1994 as M-Cell with assistance from the South African government. In 1995, it replaced its then-CEO, John Beck, with Robert Chaphe and Founder Leena Jaitley. In 2001, the company reported that its controlling shareholder was Johnnic Holdings, and the chairperson was Irene Charnley.] In 2002, Phuthuma Nhleko became the CEO, replacing then-CEO Paul Edwards, who had invested in expansion to Nigeria. MTN's competitors in South Africa include Vodacom, Cell C and Telkom Mobile. In Africa, MTN was ranked as the top telecoms brand, moving up five spots, with a brand value of US$3.3 billion. Johannesburg-headquartered MTN has 250.8 million group subscribers and operates in 21 countries and enterprise solutions to businesses in 23 countries. It has ranked 936 on the Forbes Global 2000 2019 list. The company has 18931 employees working for it as per 2019 records. In October 2012, MTN announced a partnership with Afrihost to provide DSL Broadband services in Africa. In November 2012, South African holding company Shanduka Group acquired a minority stake in MTN Group's Nigeria business for $335 million. In 2014, MTN was named on the 2014 BrandZ Top 100 Most Valuable Global Brand rankings and named the Most Admired and Most Valuable Brand in Africa. MTN retained its ranking as the Most Admired and the Most Valuable African brand in 2015. In March 2016, the company appointed Rob Shuter as chief executive officer. Shutter was replaced on 1 September 2020 when Ralph Mupita was appointed Chief Executive. SWOT: Strengths, Strong brand with largest market share in 15 countries. Huge subscriber base with more than 240 million customers. Comprehensive range of innovative products and services. Weaknesses, Major setback in Nigerian operations with National Consumer Commission imposing a penalty. Currency fluctuation in major markets. Opportunities, Digitalization to drive growth telecom players. Huge potential in Iranian markets after sanction removal. Threats, Power shortages across Africa affecting telecom infrastructure. Political developments and unrest across Middle East and North Africa (MENA) markets. PESTLE: Political turmoil, terrorism threat and unrest across MENA markets may impact MTN Business growth. High corruption level and bureaucracy in many African markets. Economical, Investments in power infrastructure required by African economies. Volatile currencies in market where MTN operates affects telecom investment sentiment. Social, MTN recognized as being citizen-centric organization. Rise in disposable income in the Sub-Saharan markets to benefit telecom sector. Technology, Digitalization to bring opportunities in cloud and analytics. Mobile wallets and content based offering an emerging business segment. Legal, Setback in Nigerian operations with National Consumer Commission penalty. Increase in regulatory demands delay decision making and business growth. Environmental, Implementation of alternative energy mechanisms. E-waste management initiatives. 1.2 The role of a Risk Manager is to communicate risk policies and processes for an organisation. They provide hands-on development of risk models involving market, credit and operational risk, assure controls are operating effectively, and provide research and analytical support. Implementing a risk management process is vital for any organization. Good risk management doesn’t have to be resource intensive or difficult for organizations to undertake or insurance brokers to provide to their clients. With a little formalization, structure, and a strong understanding of the organization, the risk management process can be rewarding. Risk management does require some investment of time and money but it does not need to be substantial to be effective. In fact, it will be more likely to be employed and maintained if it is implemented gradually over time. Identify Risk, what can possibly go wrong? The four main risk categories of risk are hazardous risk, such as fires or injuries; operational risks, including turnover and supplier failure; financial risks such as economic recession; and strategic risk, which include new competitors and brand reputation. Being able to identify what types of risk you have is vital to the risk management process. An organization can identify their risks through experience and internal history, consulting with industry professionals, and external research. Measure Risk, what is the likelihood of a risk occurring and if it did, what would be the impact? Many organizations use a heat map to measure their risks on this scale. A risk map is a visual tool that details which risks are frequent and which are severe (and thus require the most resources). This will help you identify which are very unlikely or would have low impact, and which are very likely and would have a significant impact. Knowing the frequency and severity of your risks will show you where to spend your time and money and allow your team to prioritize their resources. Examine Solutions, what are the potential ways to treat the risk and of these, which strikes the best balance between being affordable and effective? Organizations usually have the options to accept, avoid, control, or transfer a risk. Accepting the risk means deciding that some risks are inherent in doing business and that the benefits of an activity outweigh the potential risks. To avoid a risk the organization simply has to not participate in that activity. Risk control involves prevention (reducing the likelihood that the risk will occur) or mitigation, which is reducing the impact it will have if it does occur. Risk transfer involves giving responsibility for any negative outcomes to another party, as is the case when an organization purchases insurance. Implement Solution, once all reasonable potential solutions are listed, pick the one that is most likely to achieve desired outcomes. Find the needed resources, such as personnel and funding, and get the necessary buy-in. Senior management will likely have to approve the plan, and team members will have to be informed and trained if necessary. Set up a formal process to implement the solution logically and consistently across the organization, and encourage employees every step of the way. Monitor Results, Risk management is a process, not a project that can be “finished” and then forgotten about. The organization, its environment, and its risks are constantly changing, so the process should be consistently revisited. Determine whether the initiatives are effective and whether changes or updates are required. Sometimes, the team may have to start over with a new process if the implemented strategy is not effective. If an organization gradually formalizes its risk management process and develops a risk culture, it will become more resilient and adaptable in the face of change. This will also mean making more informed decisions based on a complete picture of the organization’s operating environment and creating a stronger bottom line over the long-term.
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