Driving strategic diversification: West Africa and the Gulf of Guinea

Global resources become scarcer and traditional markets for the extractive industry become saturated. Our client has no option but to diversify geographically into higher risk and higher reward regions. This carries not only security risks but also distinct business risks. Within this context, our overarching approach relied on becoming a vital business enabler through shaping governance that could respond robustly to the environmental-specific risks and ultimately position the organization to fulfil its strategic objectives.

Opportunity in Risk

Responsible risk-taking and understanding risk as a catalyst for continuous improvement were at our approach's core. As risk was identified and mitigative control measures implemented, the organization could expand its confidence levels, drive improvement within the new geographical area, and take gains into the broader organizational stream. As a result, the organization could grow, share information and lessons learned internally, and reposition its business to respond to future geographical diversification.

How did we achieve this

Conducting a broad risk assessment covering both on-shore and off-shore risks allows the organization to understand their risk profile and the geographical region they are entering.

• Construct an environment-specific governance and management system tailored to respond to the risks and position the organization to respond effectively to the risk profile.
• Design protocols, processes and additional plans to respond to emerging contingencies over time.
• Guidance with respect to stakeholder and contract management.
• Up-to-date intelligence is provided on an ad hoc basis, as situations unfold, and on a structured basis where various topics are covered.

The sustainable value added

Risk and responsible risk-taking form part of every business decision, repositioning the organization, identifying opportunity in risk and understanding mitigative control measures as long-term improvement agents that drives change.

• Establishing an informed decision-making culture where decisions can be made with greater certainty.
• Confident stakeholder management.
• Geographical diversification into higher-risk areas.
• Increased financial gain proportionate to risks.
• The start of an organizational culture geared for perpetual change.

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