BETAMEDIA LIMITED
Key risks faced by Beta Media Limited
Risk
The company is listed on the ZSE. There is risk
of non-compliance with complex listing
requirements for example corporate
governance and financial reporting.
The media industry particularly publication of
news and current events is highly regulated by
the government and risk of non-compliance is
very high. Any reporting that is deemed anti-
patriotic may lead to censure by the
government.
High competition for traditional newspapers by
digital news and social media.
High technology risk for the web division for
example hacking and viruses.
Incorrect information: There is high risk of
publishing false, incorrect or misleading
information. This can damage company
reputation and lead to lawsuits.
COVID 19 and government lockdowns affecting
effective news coverage and distribution of
newspapers and also lowering sales as people
cannot go out to buy easily and companies are
closed. Disruption of work as employees
contract the virus.
Economic Risks affecting business : inflation,
shortage of foreign currency and political
unrest
The company is managed from the Head
office .This might make it difficult for control
and coordination of operations.
Mitigation
The company should have a compliance officer
who is knowledgeable of the listing
requirements and should also ensure that the
risk committee at board level is monitoring
compliance with ZSE requirements.
Ensure that the editorial team is well trained
and aware of the government requirements.
There should be an editorial board that
approves highly controversial articles before
their release.
Persist to promote the web division to counter
the effects of decline in traditional newspapers.
Employ IT specialists and programmers who
install firewalls and oversee the security of Beta
company.
There should be an editorial board that
approves highly controversial articles before
release.
Engage government to ensure reporters are
considered as essential services and also that
distribution of newspapers is allowed, also
consider encouraging vaccination of employees
and regular testing of COVID
Pricing in USD and also consider relationship
with banks and also engage to ensure priority
on the auction rate.
Beta should consider decentralising its
operations.