Page 20 - Beeks Financial Cloud Group Annual Report 2021

18 Beeks Financial Cloud Group PLC For the year ended 30 June 2021

Strategic Report - Principal Risks and Uncertainties

Principal Risks

and Uncertainties

This risk is being mitigated by: operates a progressive and changing client requirements.
/ For key infrastructure supply, competitive remuneration policy We continue to be dynamic and
we now have multiple vendors in which includes share incentives consistently competitive on price
place for each commodity so that and that the future development
service to our clients should not and implementation of this f) The Group relies on, inter alia the
STRATEGIC REPORT
be affected with a disruption in policy will play an important part internet and broadband internet
the relationship or service with any in retaining and attracting key access and the development
one vendor management personnel and maintenance of internet and
/ Larger suppliers have been telecommunications infrastructure
replaced with smaller more e) Competition by third parties
dynamic vendors better suited The Group’s competitors include
to our business model. This generic data providers which, in The delivery of The Group’s
reduces the risk of supply chain many cases, are significantly larger products and services depends
and service affecting issues enterprises with greater financial on third party telecommunications
by forging closer relationships and marketing resources. There may and internet service providers to
and better understanding of also be new entrants to the market, continue to expand high-speed
our requirements and working for example a trading platform internet access, to maintain
practices provider could change its strategy reliable and efficient networks
/ We engage with our suppliers and become a competitor. There with the necessary speeds, quality
on a regular basis to ensure can be no guarantee that The of service, capacity and security.
healthy ongoing relationship Group’s current competitors or new Deterioration in the infrastructure
and to identify and resolve any entrants to the market will not bring may adversely affect the ability
potential issues superior technologies, products or or willingness of clients to use
services to the market or equivalent The Group’s services. In addition,
d) Reliance on key individuals products at a lower price which may increasing traffic, user numbers
The Group’s business, development have an adverse effect on The Group’s or bandwidth requirements
and prospects are dependent on a business. This risk is being mitigated by: may result in a decline in
small number of key management / Beeks continues to win business internet or telecommunications
personnel. The loss of the services from existing competitors and performance and/ or internet or
of one or more of such key has a very low client cancellation telecommunications reliability
management personnel may have rate. The quality of service and may decline. Internet or
an adverse effect on The Group. The price of our products has allowed telecommunications outages,
Group’s ability to develop its business us to grow historically without the intermittent disruptions or delays
and achieve future growth and financial and marketing resources could adversely affect The Group’s
profitability will depend in large part of some other companies. We ability to provide services to its
on the efforts of these individuals and are now focused on marketing clients. All of these factors are out
The Group’s ability when required efforts that will allow The Group to of The Group’s control. This risk is
to attract new key management compete on more fronts being mitigated by:
personnel of a similar calibre. This risk / Beeks regularly reviews its / Beeks have continued to
is being mitigated by: product and service range and increase the total available
/ The Directors believe The Group augments its offerings in line with telecommunications bandwidth