ICT and Telecoms
As ICT and telecommunications manufacturers and service-providers look to take advantage of investment opportunities in emerging and developing markets, they face heightened operational and reputational risks. These include risks stemming from complex regulatory and business environments, corruption, inadequate infrastructure networks and supply chain risks, including complicity with labour rights violations.
Against this backdrop, risk analysis firm Maplecroft has developed a range of products and services that are used extensively throughout the ICT and telecommunications sector to identify, mitigate and monitor risks throughout their operations, supply chains and distribution networks.
Key risks for the sector, such as conflict; regime stability; corruption; human rights abuses; infrastructure risks; climate change; and natural disasters, are comprehensively covered by Maplecroft’s 200 risk indices and interactive maps. These resources enable firms to identify and monitor risks to operations, investments and supply chains, while in-depth reports and analysis of country risks, company risk, labour rights, commodities and corruption provide deeper levels of insight into risk exposures and opportunities.
01Analysis of country risks for a major telecommunications producer
Maplecroft has produced a series of country risk reports for a well-known telecommunications producer to help them to minimise operational risks in a number of key countries in Africa (Kenya, Nigeria and Uganda). Each report focused on one country and provided:
- A summary of the current status of the country’s telecommunications infrastructure, including assessment of key regulatory and legal issues.
- Detailed subnational mapping of access to electricity and levels of digital inclusion, using Maplecroft’s bespoke mapping capability.
- An in-depth assessment of each country’s consumer trends, demographics (with a focus on youth and population per area) and location of economic activities.
- An assessment of localised security risks, crime (particularly material theft), political instability and corruption, with particular focus on the challenges of securing relevant ICT and telecoms infrastructure
Using these resources, the client was able to successfully understand the risks linked to building telecommunication infrastructure in their countries of interest and to put in place appropriate risk management procedures.
02Assessing labour rights risks across Latin America and Africa for a global telecommunications group
Maplecroft works closely with a global telecommunications group, with operations across Latin America and Africa, to produce a large number of labour standards reports detailing potential reputational and operational risks throughout their operating environment.
- Production of bespoke reports containing in-depth analysis of the reputational risks to the company stemming from labour rights violations, including health and safety issues; use of child labour and forced labour; discrimination; freedom of association; and minimum wage.
- Further analysis of operational risks relating to strikes and protests.
- Inclusion of comprehensive stakeholder viewpoints; key recent events; subnational maps of labour rights violations and guidance on best practice.
The reports provide the company with the necessary tools to navigate and manage potential labour risks in over 20 countries and ensure the continuity of projects and the mitigation of reputational damage.
03Assessing ethical supply chain risks for a leading ICT manufacturer
Maplecroft undertook an ethical supply chain assessment for a leading manufacturer of mobile technology.
- Using its proprietary ethical supply chain self-assessment questionnaire and risk calculator, Maplecroft evaluated the risks to the company from human rights and labour rights violations within its supply chain, which spanned three continents.
- Maplecroft then utilised data from its unique vault of 200 risk indices and 1000 indicators to further assess the risks of each supplier.
- Using this information, Maplecroft mapped the intrinsic risk exposure of each supplier and aligned it with an assessment of their risk management proficiency to provide a comprehensive evaluation of risk in over 1200 suppliers.
Maplecroft’s ethical supply chain assessment helped the company pinpoint reputational risk exposures within their supply chain and put in place processes to manage and mitigate those risks occurring.