Full integrated annual report - African Bank - Investoreports

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Risk management report continued
Risk
R6. Credit risk
Key to the success of the business is the effective management of the group’s credit exposures. The
ongoing development of the group’s underwriting models is dependent on the effective monitoring
of credit risk metrics and trends, as these inform the continual changes necessary to calibrate the
models correctly and to incorporate the effect of new risks as they emerge.
R7. Capital, liquidity and funding risk
ABIL has to maintain adequate capital levels to safeguard its operations and stakeholders against risk
and to allow it to grow.
ABIL is exposed to liquidity risk arising from the need to finance its ongoing operations and growth.
If the group is unable to obtain sufficient funding due to capital market conditions, the group may not
be able to raise sufficient funds to achieve expected growth, fund acquisitions or meet the group’s
ongoing financing needs.
R8. Logistics
One of the key contributors to achieving competitive advantage in EHL is the provision of a low-cost
system that can meet customer needs in terms of merchandise availability across the network and
deliver customers’ orders within promised lead times.
R9. Information technology risk
Uninterrupted and efficient availability of information technology services has become indispensable
and forms an integral part of the daily operations and strategy execution of the group.
Integrated report 2011 | African Bank Investments Limited