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BLUE LABEL
INTEGRATED ANNUAL REPORT 2017
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14
Understanding material matters
continued
Disaster recovery and
continuity of business
The Group has developed proprietary
technology supporting the roll out of
its bouquet of products and services.
Its infrastructure connects into some
of South Africa’s major banks, public
and private utility companies and
telecommunication operators. In
addition, the Group switches both
debit and credit cards, electronic funds
transfer transactions and e-token
products on behalf of the country’s
leading retailers and petroleum
companies. The effective and
continuous operation of this
infrastructure is critical to the Group’s
service delivery.
Management recognises the
importance assigned to IT in its
corporate governance systems.
The Group’s business continuity and
disaster recovery plan provides
guidance for emergency and crisis
management, business unit recovery
and technology disaster recovery.
The latter includes the restoration of
IT facilities. The plan describes the IT
framework and procedures to be
activated in the event of a disaster.
The major goals of the plan are to:
f
minimise interruptions and limit
damage to normal operations;
f
minimise the economic impact of
the interruption;
f
establish alternative means of
operation in advance;
f
train personnel on emergency
procedures;
f
provide for rapid restoration of
service, ensuring availability/
continuity of critical business
operations; and
f
communicate appropriately to
relevant stakeholders.
Investments in Cell C and the
3G Mobile group
The investment of R5.5 billion
in Cell C and R1.9 billion in the
3G Mobile group represent a
significant percentage of the market
capitalisation of Blue Label Telecoms.
The failure of Cell C would not only
negatively impact the investment
therein, but would have a
compounded effect on the 3G Mobile
group, in that a significant portion of
its profitability stems from its trading
relationship with Cell C.
In order to contribute to the success of
Cell C, Blue Label has representation
on the board of directors, which will
afford it complete oversight of the
performance of the Company and
ensuring that the agreed strategy is
adhered to.
The above contributions, combined
with the major reduction in interest-
bearing debt and foreign exchange
exposure thereto, are all positive
indicators for sustainable success in
longevity.