50 / 136
AfroCentric INTEGRATED ANNUAL REPORT 2016
48
Material matters
Why material?
Risks
Opportunities
Stakeholders
Response
The Group’s operations are greatly
dependent on its IT systems and
infrastructure. Investing in technology
to achieve greater cost efficiencies and
to promote technological innovation is
critical in remaining competitive
The success of the enhanced IT
platform, Fusion, is critical to the future
of business in terms of upgrading to an
enhanced system and implementing
improved levels of technology
• Shareholders
• IT suppliers
• The Group’s clients (schemes)
Cost consciousness
Diversifying revenue sources
Growth
Increased healthcare costs and
regulatory issues impact on the long-
term sustainability of the medical
schemes’ clients
• Through the CMS there are
amendments to laws and regulations
of the industry. This affects the
sustainability of the Group if
accreditation is not maintained
• With the introduction of the POPI Act,
a greater focus on compliance was
necessary to ensure the security and
protection of personal information
• The Group supports the revitalisation
of the public health sector and the
introduction of NHI and will support
government in its roll-out
Ongoing engagement with regulatory
bodies on proposed regulation and
legislation as well as the favourable
outcome of the Competition
Commission’s inquiry
• Regulators
• The Group’s clients (schemes)
Growth
Our vision, page 11
IT DEPENDENCY
REGULATORY
COMPLIANCE
TRANSFORMATION
Transformation is a strategic objective of
the Group, in line with its commitment
to the country’s transformation agenda.
Compliance with B-BBEE codes and
legislation is fundamental to the
Group’s sustainability and to remaining
competitive in the healthcare sector
Our Level 2 B-BBEE status positions the
Group well for securing contracts and
tenders
IT implementation and disruption will
impede on the growth of the business
and lead to loss in shareholder value
Regulatory non-compliance will lead
to loss of our accreditation, impeding
the ability to do business. This will
negatively impact on revenue and
profitability
The ability to secure tenders could be
compromised if the Group does not
maintain and improve its transformation
credentials
Strong B-BBEE credentials will ensure
favourable ratings for tenders for
public and private sector business,
demonstrating leadership as a South
African Group
• Employees
• The Group’s clients (schemes)
Transformation