Management use a model to identify and assess the impact of risks to the business under four key headings – financial, strategic, operational and knowledge. For each risk, the likelihood and consequence are identified, management controls are confirmed and results reported. The Corporate Governance Report in the Annual Report provides further detail more about the Group’s risk management process. The significant risks and uncertainties faced by the Group are as set out below:

Risks Background
Regulatory risk Legislation in all the markets we serve changes on a regular basis. Interpretation of existing laws can also change to create ever tightening standards, often requiring additional human and financial resources and the provision of new assets and systems. Whilst the Group is committed to respond positively to new regulation and legislation, changes could affect the pricing for, or adversely affect the revenue from, the services the Group offers.
Competitive position  The Group operates in competitive markets and intensified competition could lead to pricing pressures, a reduction in the rate at which the Group adds new customers and to a decrease in the size of the Group’s market share if clients choose to receive services from other providers.
Non-supply by major supplier    The Group sources some of its data and infrastructure from third party suppliers and partners. The removal from the market by one or more of these third party suppliers or interruption
in supply could quickly affect the Group’s operations adversely and result in the loss of revenue or additional expenditure for the Group.
Disaster recovery and business continuity        The Group has an understandable reliance on its place of business, IT systems and people. The loss of key components could affect the Group’s operations and result in additional
expenditure, whilst the established business continuity plan is effected following an incident.
New product development In order to maintain competitive advantage, the Group invests significant amounts of resources into product development. The development of all new technologies and products involves risk, including the product being more expensive, or taking longer to develop than originally planned, the market for the product is smaller than originally envisaged; or that the product fails to reach the production stage.
Intellectual property riskWe generally protect our proprietary application software products and services by licensing rights to use the applications, rather than selling or licensing the computer source code. We rely on trademark, copyright, patent and other intellectual property laws to establish and protect our proprietary rights in these products and services. However, there is a risk that our proprietary rights could be challenged, limited, invalidated or circumvented.