Page 51 - Capricorn IAR 2020

Responding to a changing regulatory and operating context
The COVID-19 pandemic dominated our operating context and regulatory landscape during the last six months of the financial year. Government and other stakeholders undertook several interventions to soften the impact. We provide a detailed economic overview on page 41, and Capricorn Group’s responses are detailed throughout this report.
Regulatory changes in the region are shaped by local socio-political circumstances and government priorities. We support the intent to protect the integrity and stability of the regional financial systems while limiting potential complexity and inefficiencies in business processes. These can drive up cost and impact customers who do not necessarily always understand the need and purpose of regulations.
In addition to regulatory compliance matters, our regional economies are confronted with sustainability challenges, such as climate change, poverty and resource shortages (water, food and energy). While sustainability issues may trigger regulatory responses, they also bring about new opportunities.
We use strategy analysis tools such as a PESTLE analysis (Political, Economic, Social, Technological, Legal and Environmental) to scan the environments in our three countries of operation. This allows us to guide the Group in terms of business implications, opportunities and appropriate actions.
The Group’s compliance team tracks, monitors and communicates all pending regulatory changes. Readiness assessments are completed annually based on what bills will be considered by Parliament for implementation
in that year. Compliance risk management plans are completed for all commenced core legislation with risks and controls being agreed with accountable executives.
The Risk and Compliance Framework ensures that our regulatory risk profile is reviewed and updated at least annually, or as and when new regulatory requirements are introduced.
We maintain good relations with all regulators as part of a deliberate stakeholder engagement strategy.
STAKEHOLDERS THAT HAVE AN INTEREST IN THIS MATTER
Customers
Government and regulators
Shareholders Media
2020 INTEGRATED ANNUAL REPORT
RELATED STRATEGIC CHOICES
RELEVANT PRINCIPAL RISK BOARD OVERSIGHT
Building our foundation Legal BARC
Win through operational excellence
Compete through strategic relationships and partnerships
Compliance
Strategic
Reputation
Operations Group
Finance and tax
CEO’s report from page 23
Risk report from page 69
BSEC report from page 96
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