As the challenges and opportunities facing telecoms operators around the worldcontinue to evolve, the sector’s risk universe is changing rapidly. And as companiesformulate and execute their strategies to sustain and grow value in today’s fast-moving environment, they have to ensure that their understanding and managementof risk keeps pace.Today, navigating through the sheer speed and scale of change presents challengesfor all operators. We have produced Top 10 Risks in Telecommunications 2012 to helpthem map out the right path. This is the latest in our ongoing series of studiesdesigned to pinpoint the most critical risk issues, analyze the sector’s evolvingresponses and highlight elements of emerging best practice.As in previous reports, we do not claim that the list of risks we present here iscomprehensive. Also, by its nature, it can only provide a generalized snapshot of therisks that we — and the sector as a whole — see at this time. Given this, we wouldencourage you to read this report with an open mind and inquisitive attitude. Arethese really the risks you face in your own business? If not, how and why are yourorganization’s risks different? And how do those particular risks impact you?The answers inevitably vary from company to company. But in every case, we believethat leaders should take the following steps:• Undertake a thorough risk assessment at least annually, to define your key risks and weigh their impact on business drivers. The risks in this report can provide a useful starting point.• Extend this risk assessment beyond the usual financial and regulatory risks to consider the wider environment in which the organization operates and the full extent of its operations, now and into the future.• Conduct scenario planning for the major risks that you identify, and develop a range of operational responses, possibly as an integrated part of the planning cycle.• Evaluate your organization’s ability to manage its risks — ensuring that the risk management processes are linked to the actual risks that the business faces, especially those that are new and emerging.• Ensure that effective monitoring and controls processes are in place to provide both earlier warning and an improved ability to respond.• Keep an open mind about where new risks may come from.Despite — or, in some cases, because of — the continuing uncertainty and volatility inthe global economy, there are major opportunities for operators. Each company’sability to identify and seize these opportunities depends critically on its ability tounderstand and manage risk. Unless your growth strategy has a solid underpinning ofrisk management, it will never be truly sustainable. This publication aims to help youbuild and reinforce that sound platform.