The following section provides a high-level overview of some of our principal business risks that could have a material adverse effect on our business, financial condition, liquidity, financial results or reputation. We also detail below our approach to dealing with these risks. Although we believe the measures taken to manage risks are reasonable, there are inherent limitations to such measures. There can be no expectation or assurance that they will effectively address or mitigate such risks. Our business is subject to inherent risks and uncertainties, and the risks described below are not the only ones that could affect us. Additional risks and uncertainties not currently known to us or that we currently deem to be immaterial may also materially and adversely affect our business, financial condition, liquidity, financial results or reputation. The actual effect of any event could be materially different from what we currently anticipate. Readers should refer to section 9, Business risks of the BCE 2022 Annual MD&A for a more detailed discussion of these risks. Readers should also refer to the section entitled Caution concerning forward-looking statements.
| Risk factors | Description | Management activities | Capitals |
|---|---|---|---|
| Regulatory environment and compliance |
Regulatory initiatives, proceedings and decisions, government consultations and government positions affect us and influence our business Inability to implement enhanced compliance frameworks and comply with legal and regulatory obligations, and unfavourable resolution of legal proceedings |
We actively participate in the public consultations by governments and regulatory bodies on issues of importance to our businesses. We seek to demonstrate the value of a policy and regulatory climate that supports investments in Canada and recognizes the long-term benefits to Canadians of facilities-based competition We inform stakeholders of the benefits we provide to local communities including employment, connectivity to world-class networks and services, and access to news, information and entertainment We aim to enhance our compliance frameworks, including through internal steering committees and employee awareness and training on emerging and evolving legal and regulatory obligations |
|
| Competitive environment |
Intensity of competitive activity, including from technological substitution and the expansion of alternative service providers, contributing to disruptions in each of our business segments |
We invest in and leverage our suite of products and services and relationships to build and maintain a strong customer value proposition while seeking to expand our market presence We have a disciplined strategic planning process which seeks to address changing market dynamics in relation to traditional and new markets We aim to establish differentiation against traditional and new competitors, leveraging strategic partnerships where beneficial to serve our customers |
|
| Security management and data governance |
Inability to protect our physical and non-physical assets from events such as information security attacks, unauthorized access or entry, fire and natural disasters Failure to implement effective data governance |
We have a well-developed information security strategy which guides our investments in the implementation of detection, prevention and response programs aimed at protecting our assets against cyber threats Our security programs also seek to protect our extensive portfolio of physical assets in relation to unauthorized access, structural damage and business continuity We adopted an enhanced data governance policy, and implemented mandatory information security and enhanced data governance training for all employees |
|
| Technology/ infrastructure transformation |
Failure to evolve and transform our networks, systems and operations using next-generation technologies, while lowering our cost structure |
We are making significant investments in next-generation transformational networks and technologies. This broadens our reach, streamlines and simplifies systems, and brings continuous innovation to the products and services we offer. We also leverage strategic partnerships where beneficial, with a holistic focus on seeking to enhance customer value and improve our underlying cost structure |
|
| Customer experience |
Inability to drive a positive customer experience in all aspects of our engagement with customers |
Championing the customer experience is a Bell strategic imperative and is central to our choice of strategic investments and operating principles and practices We constantly seek to innovate in the ways we deliver service and support. This includes improvements to the range and capabilities of our online self-serve and support options, and the deployment of innovative tools that use artificial intelligence and machine learning technologies |
|
| People |
Failure to attract, develop and retain a diverse and talented team capable of furthering our strategic imperatives Workforce disruptions and failure to maintain positive labour relations |
We strive to be an employer of choice. We have employee programs in place to monitor engagement, health and well-being, DEIB objectives and initiatives, performance, and individual development in line with team member career goals and our business requirements We offer competitive compensation and flexible working conditions aimed at creating an attractive overall employee value proposition |
|
| Operational performance |
Failure to maintain operational networks and to implement or maintain effective processes and IT systems Events affecting the functionality of, and our ability to protect, test, maintain, replace and upgrade our networks, IT systems, equipment and other facilities |
We focus on delivering high-quality reliable services across our networks and service portfolios through performance monitoring, proactive maintenance and strategic redundancy We seek to improve network and technology performance considering availability, cost and the environment We perform assessments of critical assets and carry out continuous business impact assessments of key functions and backup planning to support smooth operations |
|
| Vendor management/ supply chain |
Our dependence on third-party suppliers, outsourcers and consultants to provide an uninterrupted supply of products and services we need Failure of our vendor selection, governance and oversight processes and the extent to which our products and services may fail to comply with applicable standards |
We have enhanced our vendor risk management program that aims to profile and manage ongoing risk exposure in key supplier arrangements. We work with suppliers to develop appropriate remedial strategies when issues are uncovered We seek to address supply chain constraints by actively managing inventory levels and implementing the approriate sourcing responses |
|
| Reputation and environmental, social and governance practices |
Reputational risks and the inability to meaningfully integrate ESG considerations into our business strategies and operations, or to achieve our ESG performance targets Failure to take appropriate action to adapt to current and emerging environmental impacts, including climate change Pandemics, epidemics and other health risks Failure to develop and implement strong corporate governance practices and adequately manage social issues |
We seek to integrate ESG into our business strategies and brand value proposition We have set targets against certain ESG topics that we monitor. Some of those targets are linked to compensation. We implemented initiatives that aim to improve ESG performance, and enhanced our ESG public disclosures in line with global initiatives and reporting standards We have established clear lines of authority over, and oversight of, our corporate responsibility programs and our approach to ESG practices with primary accountability at the Board-level We implement various preventative measures to address health and environmental risks We have implemented corporate governance practices, including through our Code of Business Conduct, as well as policies and systems seeking to monitor and address legal exposure |
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| Financial management |
Inability to access adequate sources of capital and generate sufficient cash flows from operating activities to meet our cash requirements, fund capital expenditures and provide for planned growth Failure to achieve targeted cost reductions. Failure to adequately manage our exposure to financial risks, such as credit, liquidity and market risks. Failure to manage risks related to tax amounts, contributions to post-employment benefit plans, and fraudulent activities |
We have implemented financial management systems and practices to monitor our liquidity levels and our access to capital. We seek to protect against material economic exposures and financial risks We further implement targeted initiatives as we seek to optimize our cost structure |
