Page 13 - CIMA SCS Workbook August 2018 - Day 1 Suggested Solutions

SUGGESTED SOLUTIONS

the date a risk was identified would be in a risk register, and this is not present in FNG’s although
they do have the change column and this shows it has been recently reviewed.

Finally FNG have the very important mitigations column, so it is clear what controls they have in
place or they are intending to put in place. For those that have intended actions – like the new
revenue streams risk – it would be beneficial to have a time frame around when this is intended
to happen.

Other suggestions to improve the risk register would be a residual risk rating – after the
mitigations have been considered – but perhaps most importantly a risk owner. A risk owner
would mean that someone had responsibility for making sure actions were taken and that people
would also know who to contact about any issues related to that risk.

In terms of additional risks and mitigations for these risks, below are some other factors that
could pose issues for FNG and how they could be mitigated.

The competitive environment

There have been very tough operating conditions for printed media companies for some time now
and as companies work to try and remain profitable it is a very competitive environment. FNG is
not the largest newspaper group as the 3 largest are listed on the Borland stock exchange.
However as technology advances it is not just newspaper groups that become competitors.

Mitigation

FNG needs to continue to invest in producing quality local news that is current and well presented
– however it is consumed. As the pre-seen states on page 23 “The format and delivery may
change but the basic human need of wanting to uncover, tell and share stories will always
remain.” So as long as they remain accessible people will be likely to look to FNG and their brands
to supply that information.

Information Technology

Technological advancements mean that there are more efficient ways of working, but as per
previous point increasing competitors. This creates issues in both costs and revenues for FNG.

Mitigation

FNG need to increase their focus on IT, the IT department appears to be quite a low priority at the
moment, reporting into the CFO. More strategic thinking relating to the use of IT will allow FNG to
make better use of the technology available to generate revenue & become more efficient.

Retention of key staff

The quality of staff is mentioned in various ways throughout the pre seen. From the highly trained
and skilled staff at the print facilities, to their CSR policy of attracting and retaining the best
people. In a competitive and uncertain time it becomes more likely that staff will be aware of the
challenges in the industry and be looking to work at an organisation well suited to meeting those
challenges.

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