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Logicalis Latin America – Strategic risk management

Logicalis Latin America

Risk   Response
Uncertainty in business environment due to global risks (trade war and tariffs, China deceleration, geopolitical conflicts) and uncertainty in Logicalis LATAM's main territories   Continuously monitor scenarios and business performance; increase recurring revenues, diversify exposure across clients, vendors, and regions, and maintain strict operating expenditure control in an inflationary context.
Slow growth rate in key market (data centre systems)   Continue the shift toward IT services and software, focusing on high-growth market areas such as application modernisation and cloud-managed services. Expand managed services and DevOps across LATAM, and strengthen Logicalis LATAM's digital offerings in cloud, data analytics and information security.
Vendor concentration   Focus on continuous monitoring and performance management, while expanding partnerships with key players such as Microsoft and AWS. Logicalis LATAM also plans to grow its services over these partners' technology platforms, prioritise cloud and software offerings, and expand its presence in the data centre domain, including servers and storage.
Weakening vendor positioning/competitiveness in Latin America telco market   Focus on defending its customer base and market share, expand business with other relevant vendors, and target areas of growth and new vendor investments.
Competition in the region – competitors pursuing integrated value proposition, expanding scale and increasing competitive power   Focus on defending Logicalis LATAM's customer base and positioning itself as the partner of choice for IT services by adopting an agnostic approach that aligns with clients' evolving needs.
Customer concentration mainly in the telco and financial services markets   Aim to expand customer base and business volume with enterprise clients across various verticals, deepen relationships to increase share-of-wallet among blue-chip customers, attract new strategic accounts, and maintain continuous performance monitoring to enable timely actions when needed.
Finance/capital costs. High-interest rate scenario still impacting customers' investments decisions and divisional results   Optimise cash management by evaluating finance and capital costs, analyse finance costs within the sales process, negotiate better payment terms with customers, and secure improved conditions and extra discounts with vendors/partners.
LATAM currencies devaluation trend   Maintain a hedging strategy to minimise foreign exchange volatility impact where possible.
Cyber security threats   A comprehensive cyber security strategy has been implemented. Cyber risk insurance is maintained and regular security tests are performed. Technical controls are in place and data protection is enforced. Awareness is promoted via phishing simulations, and 24/7 monitoring and incident response is in place.