Ricki Gageby-AT&T risk assessment
docx
keyboard_arrow_up
School
West Virginia University *
*We aren’t endorsed by this school
Course
4074
Subject
Information Systems
Date
Feb 20, 2024
Type
docx
Pages
4
Uploaded by DoctorVulturePerson51
AT&T Risk Assessment
Ricki Gageby
BUS4077- Capella University
November 12, 2023
Risk Assessment:
Shared Risks:
Traditional Land-line Communications Business
:
1. Regulatory Changes: Shifts in regulations impacting landline services.
2. Technological Disruption: Declining demand for traditional landline services due to technological advancements.
3. Competitive Pressure: Intense competition affecting market share and pricing.
4. Economic Downturn: Reduced consumer spending on non-essential services.
5. Infrastructure Vulnerabilities: Risks related to the physical infrastructure, such as natural disasters or cyber threats.
Wireless Communications Business
:
1. Spectrum Auction Outcomes: Availability and pricing of wireless spectrum.
2. Network Security: Cybersecurity threats affecting wireless infrastructure.
3. Changing Consumer Preferences: Shifts in consumer demand for wireless services.
4. Integration Challenges: Risks associated with mergers or acquisitions impacting wireless operations.
5. 5G Implementation Risks: Technological challenges and potential delays in 5G deployment.
Acquisition Activities:
1. Integration Risks: Challenges in merging different corporate cultures and systems.
2. Financial Leverage: Risks associated with high levels of debt for acquisitions.
3. Regulatory Approvals: Delays or denials in regulatory approval for acquisitions.
4. Market Saturation: Difficulty in finding suitable acquisition targets.
5. Strategic Misalignment: Acquiring companies that don't align with AT&T's overall strategy.
Non-Shared Risks:
Traditional Land-line Communications Business:
1. Local Regulatory Environment: Unique regulatory challenges in specific regions.
2. Customer Concentration: Dependence on a few major clients.
3. Legacy Technology Risks: Obsolescence of specific technologies in landline services.
4. Labor Union Issues: Risks associated with labor disputes in certain areas.
5. Geopolitical Risks: Political instability impacting operations in specific locations.
Wireless Communications Business:
1. Device Manufacturer Relations: Risks related to partnerships with device manufacturers.
2. Network Infrastructure Outsourcing Risks: Challenges associated with outsourcing network operations.
3. International Expansion Risks: Entering new markets with different regulatory environments.
4. Roaming Agreement Risks: Risks related to agreements with international telecom operators.
5. Emerging Technology Risks: Rapid changes in technology affecting wireless services.
Acquisition Activities:
1. Legal and Compliance Risks: Unique legal challenges associated with specific acquisitions.
2. Cultural Integration Risks: Challenges in integrating diverse corporate cultures.
3. Brand Reputation Risks: Negative impacts on the brand image due to acquired companies' issues.
4. Synergy Realization Risks: Difficulty in achieving expected synergies.
5. Hidden Liabilities: Undisclosed financial or legal liabilities associated with acquired companies.
Management Strategies:
Shared Risks (Corporate Level):
1. Active Regulatory Monitoring: Establish a dedicated team to monitor and adapt to regulatory changes.
2. Innovation Investment: Allocate resources for continuous technological innovation.
3. Strategic Partnerships: Form alliances to strengthen competitive positions.
4. Diversification: Explore new revenue streams to mitigate economic downturn risks.
5. Robust Infrastructure Security: Invest in advanced cybersecurity measures to safeguard infrastructure.
Non-Shared Risks (Business Unit Level):
1. Localized Compliance Teams: Establish specialized teams to handle region-specific regulatory challenges.
2. Client Relationship Management: Implement strategies to diversify and maintain strong client relationships.
3. Technology Roadmaps: Develop plans to phase out legacy technologies and adopt future-proof solutions.
4. Labor Relations Teams: Proactively engage with labor unions and address concerns.
5. Geopolitical Risk Assessments: Conduct thorough analyses before entering or expanding in new markets.
The determination of whether management of non-shared potential exposures is better handled centrally or decentralized depends on the specific nature of these risks and the company's overall organizational structure and capabilities. A regular review and adjustment of risk management strategies are essential to adapt to the evolving business landscape. I think the generalized risks can be handled in a more decentralized way. However, with dealing more with client/customer hands-on risk you should deal with it more centrally.
Your preview ends here
Eager to read complete document? Join bartleby learn and gain access to the full version
- Access to all documents
- Unlimited textbook solutions
- 24/7 expert homework help
References
AT&T (T) stock risk factors
. (2023, November 10). TipRanks | Know Who to Trust. https://www.tipranks.com/stocks/t/risk-factors
Dano, M. (2023, November 3). AT&T, others facing “significant financial exposure” from lead legacy
. https://www.lightreading.com/optical-networking/at-t-others-facing-significant-
financial-exposure-from-lead-legacy
Form 10-K
. (n.d.). https://www.sec.gov/Archives/edgar/data/732717/000119312519045608/
d705958d10k.htm
Oguh, C. (2023, July 17). AT&T shares hit three-decade low as lead cables risk weighs. Reuters
. https://www.reuters.com/business/media-telecom/att-shares-hit-three-decade-low-lead-
cables-risks-weigh-2023-07-17/#:~:text=AT%26T%20faces%20unquantifiable
%20financial%20risks,said%20in%20an%20investor%20note
.
SEC filings
. (n.d.). https://investors.att.com/financial-reports/sec-filings