risk management continued
KEY AND EMERGING RISKS RISK AREAS
CONTEXT
Business evolution and adaptation Rapid digitalisation and technology changes Product/service commercialisation
Vector’s business must continue to evolve to adapt to changing customer requirements and expectations, and balance regulated and non-regulated revenues effectively. Vector must innovate and keep pace with technological advancements as they emerge to remain relevant; however, to prevent operational vulnerabilities, this rapid uptake of technology must be adopted appropriately. As Vector expands into new services and products, the commercial, environmental and social benefits must be assessed and balanced to deliver long-term stakeholder value. Vector must carefully manage our continued expansion into the Australian energy market, particularly within the metering industry, to ensure delivery of acceptable investment returns. Changes in the New Zealand and Australian political and regulatory landscape and the ability of the regulatory environment to keep pace with technological and operational change remain key influencers on Vector and its operations. The ability for Vector and our key service providers to recruit and retain the necessary workforce is challenged by skills shortages and Auckland affordability. The potential threat of a compromise to Vector’s IT/OT environment resulting in disruption to critical services or confidential information being released, modified or deleted remains of heightened concern. Because of the nature of our business, Safety Always is fundamental to the way Vector operates in order to protect our people, our contractors and the wider public. As a major lifeline utility within Auckland, Vector maintains strong business continuity practices to minimise disruption stemming from the unlikely event of a significant operational incident at a critical site. The use, speed and hyper-transparency of social media, coupled with our increasing engagement with customers, requires careful and appropriate management to protect Vector’s reputation in the marketplace. Climate change has multiple ramifications for Vector; our network assets are exposed to potential changes in weather trends and increased severe weather events, while a transition to a net zero emissions economy presents both risks and opportunities for the business. The heightened focus and public perception on organisational trust, transparency and conduct reinforces the importance of continuing to operate in a manner that reflects the values, ethics and expectations of our stakeholders and the wider community.
Australian investment Political and regulatory uncertainty
Labour market dynamics
Cyber security
Significant HSE incident Core business operational failure
Reputational damage
Accelerated climate change adaptation
Trust and ethical conduct perceptions
Environmental risks Technological risks Economic risks Societal risks Operational risks
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Vector://AR 18
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