NetComm Wireless is dependent on and subject to the rapid pace of change in the technology that people and machines use to communicate with each other. This environment gives rise to exciting new growth opportunities for NetComm Wireless as well as certain risks inherent to the industry in which the Company operates.
The Audit and Risk Committee regularly reviews all material business risks and ensures that the Company implements strategies to mitigate those risks.
As part of its commitment to quality and risk management, NetComm Wireless also regularly reviews its operational performance in line with its accreditation to the following international standards:
- ISO 9001: Quality management system
- ISO 14001: Environmental management system
- BS OHSAS 18001: Safety management system
- AS/NZS 4801: Occupational health and safety management system
The table below describes the most significant potential business risks (including any material exposure to economic, environmental or social sustainability risks) for NetComm Wireless and the mitigation strategies that the Company employs to manage those risks.
Dependence on any single customer/project for revenue
1. Provide customers with customised products as solutions to specific requirements
2. Build strong relationships with leading telecommunications carriers globally
3. Develop strategic alliances with key partners to enter new geographical and vertical markets
Ability to keep up with the pace of change
Retain focus on key technologies (especially M2M) through ongoing market intelligence and attendance at key international conferences
Security of our IP
Use own software and do not provide source code to factories
Production capacity limitation
Use contract manufacturing which can be scalable to meet business requirements
Exposure to foreign exchange fluctuations
Selectively hedge. (We already have a natural hedge as most of our sales and costs are in USD)
Ability to fund growth
Establish flexible bank facility
Ability to attract and retain quality people in key positions
Provide an excellent work environment, access to training and long term incentive plans