Risk intelligence vital for business survival in Africa

Risk intelligence vital for business survival in Africa

by Magneto

For a business to survive many turbulent in the African economy, there is a need for Business Risk Intelligence services.

RISK. This is one of the most feared situations. However, it does not need a seer or sage to recognize it. Risk is as predictable and devastating as a hurricane and a corporate scandal in Uganda, Kenya, Tanzania, Rwanda, and East Africa.

But you need skills to detect the opposite side of the risk coin, which represents opportunity, competitive advantage, and growth.

Traditional approaches to risk management emphasize mitigation, focusing on the readily apparent risks facing a firm in the areas of security, privacy, credit, regulatory, technology, or fraud. These threats are important and must be addressed.

But enlightened risk managers do not worry just about the bad things that could happen, such as the theft of sensitive customer data. They also consider the good things that might occur like introducing a hit product on the market.

It’s vital to evaluate potential crises and consider risks that are linked to success to capitalize on opportunities. These are the two faces of risk; rewarded risk, and unrewarded risk. Unrewarded risk represents what poker players call table stakes. Many examples of unrewarded risk appear in business. For instance, a firm in Uganda must comply with payroll tax, withholding laws, and pay bills. Yet firms that do all of these tasks timely and competently don’t see their share price surge as a result.

These kinds of activities simply meet the expectations of shareholders, regulators, suppliers, analysts, and other stakeholders. The attendant risks cannot be ignored, but the primary incentive for addressing them is value protection, not value creation.

You can read the full story on the New Vision website written by Alex Twesigye who works with Deloitte Uganda