Full integrated annual report - African Bank - Investoreports

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Risk management report continued
High level risks
Risk
R1. Economic environment
The group’s growth and profitability is inextricably linked to the prosperity of the South African economy
and its participants. Inflation and unemployment are two key indicators of increasing vulnerability in
our targeted market segments.
R2. Competitive landscape
More providers of unsecured lending are entering the market and attempting to erode the market
share of ABIL. In light of this as well as increased pressure on household spend, this is a strategic
risk that has been identified as well as actively managed by the group to prevent the eroding of market
share and also to ensure sustainable growth.
R3. Our people
The long term success of any organisation is predominantly dependent on the quality and retention of
staff and their commitment and passion for the business. The failure to retain skilled employees or to
keep them motivated may lead to increased costs and deteriorating performance.
The considerable increase in competition recently, as well as the substantial growth in our business
has made recruitment, retention and employee satisfaction top priority in ABIL.
R4. Growing our customer base
ABIL’s strategy is to continually improve our customer value proposition by translating scale and
critical mass into greater value. To achieve and maintain the scale, we have to continue to broaden our
customer base in our chosen market segment.
R5. Scalability of the business
The group has audacious goals for the growth of the business over the short to medium term, and
it is critical that all aspects of the business grow at the same pace to ensure the success of the
business model.
Integrated report 2011 | African Bank Investments Limited