Risks A shift from ad-hoc reaction to risks to a comprehensive risk management framework including hiring of risk management professionals Risks inherent in this business plan were assessed using the framework shown in Figure 111. This framework allows for risks mitigation/management risks to be classified into one of four classifications – (1) strategy, (2) contingency, (3) strategy refinement and (4) non-strategic. Figure 111: Risk Assessment Framework The table below provides a summary of identified risks in the first three classifications, their relative importance and proposed risk mitigation or management strategies. A full risk register will be developed over the next 6 months. Table 111: Risk Assessment Description Classification Mitigation / Management Wari is diversifying its activities through 2 Maintain existing banking digital banking. Although this activity is relationships and continue to expected to improve Wari’s financial discuss deepening relationships performance in the medium term, the with these banks. transformation exposes the company to Develop a marketing campaign strong competition from banks. that increases the likelihood that Wari is the preferred choice for new banking customers. Major mobile network operators are 1 Wari’s acquisition of Tigo Senegal aggressively pursuing mobile money market is part of its mitigation strategy. share and have developed significant Additionally, Wari’s planned international distribution networks and acquisition of BIMAU bank will pricing power. This poses the risk that Wari allow a rapid roll-out of its digital will not be able to extend its market and banking solutions, thereby product footprint rapidly enough to stave off stepping over the offering of other the competition. Major mobile network operators To deliver on its digital banking strategy, 1 Identify human resource Wari will need to recruit a number of skilled requirements early and maintain a specialists over the next few years. database of qualified professionals Difficulties in recruiting these people risks who may be interested in joining delaying or undermining implementation of Wari at the appropriate time. the strategy.
Risks A shift from ad-hoc reaction to risks to a comprehensive risk management framework including hiring of risk management professionals Risks inherent in this business plan were assessed using the framework shown in Figure 111. This framework allows for risks mitigation/management risks to be classified into one of four classifications – (1) strategy, (2) contingency, (3) strategy refinement and (4) non-strategic. Figure 111: Risk Assessment Framework The table below provides a summary of identified risks in the first three classifications, their relative importance and proposed risk mitigation or management strategies. A full risk register will be developed over the next 6 months. Table 111: Risk Assessment Description Classification Mitigation / Management Wari is diversifying its activities through digital banking. Although this activity is expected to improve Wari’s financial performance in the medium term, the transformation exposes the company to strong competition from banks. 2 Maintain existing banking relationships and continue to discuss deepening relationships with these banks. Develop a marketing campaign that increases the likelihood that Wari is the preferred choice for new banking customers. Major mobile network operators are aggressively pursuing mobile money market share and have developed significant international distribution networks and pricing power. This poses the risk that Wari will not be able to extend its market and product footprint rapidly enough to stave off the competition. 1 Wari’s acquisition of Tigo Senegal is part of its mitigation strategy. Additionally, Wari’s planned acquisition of BIMAU bank will allow a rapid roll-out of its digital banking solutions, thereby stepping over the offering of other Major mobile network operators To deliver on its digital banking strategy, Wari will need to recruit a number of skilled specialists over the next few years. Difficulties in recruiting these people risks delaying or undermining implementation of the strategy. 1 Identify human resource requirements early and maintain a database of qualified professionals who may be interested in joining Wari at the appropriate time.
4_Wari_business_plan_-_21Sept2017_final_-_as_sent_1.docx