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 160+ 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.
With over 160+ risk indices and interactive maps, Maplecroft analyses the most pressing issues impacting the agro-commodities sector down to site specific levels. Indices and maps include: climate change vulnerability; natural hazards; water stress; food security; corruption; legal and regulatory risks; political risks; poverty and development; and reputational threats arising from complicity with labour rights and human rights violations in the supply chain.
Maplecroft’s indices and interactive maps are available individually or can be accessed through seven thematic risk atlases, which aggregate key issues.
Maplecroft’s Atlases are updated annually and provide maps, indices and scorecards for up to 197 countries, as well as analysis of the key issues, methodologies and data sources.
Global Risks Atlas
Assesses the strategic risks that impact the global value chains of business, as well as the ability of national institutions to mitigate them. Includes 36 risk indices and interactive maps assessing macroeconomics; security; resource security; climate change; and pandemics; governance risks and societal resilience.
Political Risk Atlas
Appraisal of traditional political risks including: conflict, terrorism, rule of law and the regulatory and business environment; as well as structural challenges affecting political stability such as resource security, climate change and human rights. Includes 50 political risk indices, maps and scorecards for 197 countries.
Legal and Regulatory Environment Risk Atlas
An ideal tool to help organisations identify and monitor legal and regulatory risks, such as corruption, corporate governance, regulatory framework, respect for property rights. Includes 21 indices and maps, scorecards for 173 countries, in addition to an assessment of the implementation of ten key legal instruments.
Human Rights Risk Atlas
Analyses 31 different human rights violation categories – including seven composite indices covering human security, labour rights and protection, civil and political rights, access to remedy, complicity and lack of rule of law, reporting environment, and overall human rights protection – across 197 countries.
Climate Change and Environmental Risk Atlas
Provides comprehensive analysis of the key risks to business in the areas of climate change vulnerability and adaption; emissions and energy use; environmental regulation; and ecosystem services. It includes 23 interactive maps and indices, which have been developed to identify, evaluate and compare climate change and environmental risks down to 25km2 worldwide and provide insight into current and emerging trends.
Natural Hazards Risk Atlas
Evaluates the risks and resilience to the occurrence of natural hazard events in 197 countries. Includes indices and interactive subnational maps of 12 natural hazard risks, as well as scorecards for all countries. The Atlas also measures overall economic exposure and socio-economic resilience to natural hazards.
Growth Markets Atlas
Provides an evaluation of economic performance, investment conduciveness, recent structural reforms and projected future demographic trends, including growth of middle class consumers. Maplecroft divides its scoring across the three indices evaluating Growth Performance, Growth Environment and Growth Potential. The Atlas includes 17 indices and scorecards for 173 countries.
Maplecroft’s briefings and in-depth reports help ICT and telecoms companies to monitor and manage a wide variety of operational and reputational risks across their value chain in consistent and comparable ways in all countries.
Maplecroft monitoring and reporting system
- Baseline in-depth reports (25+ pages): Produced at the outset of the year or at an agreed alternate annual date to provide substantive background analysis and due diligence review of key issues and risks (the governance framework; political risk and violence; the economy; the regulatory and business environment; human rights and society; and natural hazards, environment and climate change). In addition the reports integrate GIS derived, sub-national maps and provide stakeholder viewpoints on risk and key recent events.
- Weekly, Monthly, Quarterly Monitors (1 page scorecards for key watch countries): Offering quantitative country risk scores and trends of increasing, unchanged or decreasing risk across key risk areas and qualitative analysis of significant recent events and outlooks across the core risk areas. Developed to focus on issues driving changes to risk scores and our forecast for the next quarter including implications for sectors.
- Trigger briefings (2-4 pages): Concise analysis and forecasts that are activated when the risk within a country changes significantly, as shown in the monitor. These focus on the issues driving changes to risk scores and the implications for business.
- In-depth update reports or tailored specific reports (25+ pages): Produced when more in-depth analysis is required on the back of the trigger briefing and pertaining to sectors or business specific
Issue specific reports
- ICT and telecoms country risk reports: In-depth analysis of the specific operational and reputational risks within a country. These include: legal and political barriers to foreign ownership of telecommunications; regulatory issues; labour rights challenges facing manufacturers; incidence rates of material theft (e.g. copper wires and fuel); as well as natural hazards and environmental threats. They also include trends, forecasting, stakeholder views, recent events and GIS-derived sub-national maps, including overlays of infrastructure, rates of digital inclusion, material theft, topography, etc.
Further products for the ICT and telecoms sector are available via the Global Risks Portfolio and include: labour standards reports, corruption risk briefings, election monitors and quarterly monitors for political risk and human rights. Reports and briefings are available for all countries and issues.
Custom country / sovereign risk calculators enable ICT and telecoms companies to select and compare risk indices to create scorecards that quantify risk for all countries. The Interactive Dashboard also allows companies to combine their own compliance and country risk data with Maplecroft’s indices in a central repository where they can create bespoke indices, maps and risk scorecards using a proprietary online interface..
Maplecroft’s advisory services help ICT and telecoms companies to minimise risk exposure and identify opportunities throughout key markets. We conduct bespoke risk assessments, human rights due diligence, political risk monitoring and offer an award-winning sustainability reporting service alongside client-specific advisory services.
Maplecroft’s supply chain management tools and services allow companies to use an extensive bank of indices to comprehensively assess their supply chain risk across all countries and industries, from a national and sub-national level down to individual suppliers. This includes both ethical supply chain issues (e.g. human rights, health and safety) as well as supply chain continuity, influenced by political risk (e.g. regime instability, terrorism) and operational risks, for instance, relating to natural disasters (e.g. earthquakes and floods).
Key ethical supply chain services include:
- Initial pre-screening and risk assessment based on country risk, sector and product area, supplier size, volume and spend, as well as strategic significance.
- A self-assessment questionnaire that is completed by suppliers and producers to allow company-level risk assessment.
- An in-depth and targeted audit of suppliers flagged as high risk during the previous two stages.
Business can weight different indices according to their own priorities (e.g. labour rights, corruption, natural hazards risks) in order to produce a risk assessment that reflects their individual operational/business drivers and corporate codes of conduct. This allows them to measure their progress towards their corporate and social responsibility targets. These tools are particularly useful for ICT and telecoms firms working in emerging economies that display a highly dynamic risk environment.
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 160+ 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.