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How to talk about Tax
DRIVING BUSINESS THROUGH UNCERTAINTY DRIVING BUSINESS THROUGH DRIVING UNCERTAINTY DRIVING BUSINESS THROUGH IFRS 15REVENUE FROM CONTRACTS WITH IFRS 15- REVENUE FROM CONTRACTS WITH CUSTOMERS CUSTOMERS
Getting more from Risk Management REPM is about creating tangible intrinsic to their business, then busicutting cost and increasing risk moni- performance, operations, etc Getting more from Risk Getting more from Risk Management REPM about creating tangible ness intrinsic to their then busicuttingeffectiveness. cost and increasing risk moni- performance, operations, etc Businesses in Zimbabwe are currently value. It canisdrive more robust analysis leaders need business, to think about how toring Getting more from Risk value. Management This article is antoextract from the T Magato discuss issues and come up with the The public toward taxation changed flexible a crisis because they are unable Businesses Zimbabwe are currently It can drive morein robust analysis ness leaders need to think about toring effectiveness. The move becoming risk-enabled operating inmood ainchallenging and uncer-hasof investment decisions, helping imbusiness is accomplished, the true how val-these The beginning is to understand Management Businesses in Zimbabwe are currently operating zine. For more information, contact a set of acceptance industry guidelines dramatically. There was a time, not long ago, to adapt or change quickly enough. operating in a challenging and of investment decisions, helping im- ue-creation business is accomplished, the true valThe and beginning understand that the focuses The move to becoming heavily on risk risk-enabled strategy Maxwell and tain environment. Evidence of theuncerchalprove returns on capital investments, life cycle of business. Are nature impactisofto uncertainties in did Zimbabwe are currently operating inBusinesses atain challenging and uncertain environment. EviMangoro for heavily Tax risk insight for business leaders around tax. may vary secwhen society not pay much to how The government has also gotleaders an life imporembedding The lenges and the impact of uncertainties well as identifying opportunities to business aware business are (or have the between potential to) dramatienvironment. Evidence of theattention chal- as prove returns on capital investments, ue-creation cycle of their business. Are These nature and impact of uncertainties that focuses onmanagement. risk strategy and dence of the challenges and theThat impact ofall uncerinare a challenging and uncertain environment. Evimagazine volume 10. tors, or company sizes, but the broad conmuch tax a company paid. has changed tant role to play here. When a tax crisis alignment created from board to “shop common around us. Companies are reduce uncertainty and improve prodrivers? REPM needs to become part cally impact business results and stratelenges and the impact of uncertainties as well as identifying opportunities to business leaders aware of their business are (or have the potential to) dramati- embedding risk management. The tainties arethe common around us. Companies are dence of and the impact of uncerEmail:floor” Maxwell.mangoro@zw.ey.com or eyshould the same. Such guidelines since what you might call “the tax are spring,” when arises, it improve isthe always the of company that has by risk-enablement willtoprovide staggering orchallenges delaying salary payments, ject economics. By shifting focus to the rhythm ofneeds the business: meangic plans, andbusiness then using thatand awareness are common around us. Companies reduce uncertainty and prodrivers? REPM to cepts become part be cally impact results stratealignment created from board “shop staggering or delaying manufactainties are common around us. Companies are would reduceto the temptation to adopt a marketing@zw.ey.com pressure groups andsalary the media started picking to justify why they to tooking certain taxofpoplatform for improved controls, and manufacturing sector haspayments, stagnated, risk-enabled performance managerisk management flowmeanfrom improve decision-making. Focus is the staggering or delaying salary payments, ject economics. By shifting the focus ofa the rhythm theshould business: gic plans, and then using that awareness floor” by risk-enablement will provide turing sectorexamples has stagnated, informal con- organizations staggering or delaying salary manufacAngwa Building, Corner more aggressive stance, while a common up on any of perceived tax avoidance. There is never any real-time and effective monitorinformal retailing continues tostagnated, takeretailing the ment, can concentrate strategic and business should planning, operato:- decision-making. manufacturing sector haspayments, risk-enabled sition. performance manageingcommunication risk management flow from given to improve Focus Address: is more the platform forCity improved controls, and Jutinues tosector take the place of once mighty retail giants, turing has stagnated, informal retailing conlius Nyerere Way/ Kwame Nkrumah Avenue. set ofoperaguidelines offer companies In today’s climate of economic austerity, the from the beoversight more transing. Risk-enablement is one ofmonitorthe keys place of once mighty retail giants, banks on uncertainty holistically, rather than to tions, and monitoring, creat► would what key uninformal retailing continues to take the ment, organizations cangovernment concentrate strategic and business planning, given to:- Determining more real-time and effective banks are choking from unsustainable Non-Pertinues toof take the place of once mighty retail to the value risk manare choking from unsustainable Nonjust identifying and measuring risks a line of benefit sight runs from the certainties theand business is facing, P O Box 62, Harare, Zimbabwe. Tel: +263 4 much greater protection strength in relapublic expects everyone togiants, do their bit.giants, parent and rather set out the ing economic place once mighty retail banks on uncertainty holistically, than tions, oversight andthat monitoring, creat► Determining what key uning.unlocking Risk-enablement isfrom one of the keys forming Loans (NPLs), and imports andNon-Pertechnobanks are choking from unsustainable agement. Businesses see value at Performing Loans (NPLs), andcitizenship imports individually. board operations. tive to its results; 750905/ 750979 numbers in the event that come un- relaExpectations about good are identifying par- of making possible certain structures. are choking from unsustainable Nonjust and measuring risks ing tax a to line of sight that runs from the certainties the they business is facing, to unlocking the valuewill from risk manlogical changes are threatening thethreatfew businesses forming Loansfor (NPLs), and imports and technopoints, including: and technological changes are It iscontrue that the volatility companies and velocThe to rhythm of the business can be ► to its results; Aligning the company’s risk several der fire. ticularly high wellknown and popular Finally, have aoperations. common Performing Loans (NPLs), and imports individually. board tive agement. Businesses will see value at that havechanges survived since dollarization. logical are threatening therecent few businesses ► Improved predictability of ening the few businesses thatin have surity of are high thanks toThey uncervisualized bytogether analysing external uncerthe riskthe appetite (basedrisk on sumer However, months, a that interest here. should work and brands. technological changes are threatIt ischange true the volatility and velocThe rhythm of the business can be profile ► with Aligning company’s several points, including: Many business people believe policy changes at in government economic poli- tainties (Market volatility, Regulatory strategies and goals), and that have survived since dollarization. vived since dollarization. range of companies have come attack in are high thanks to uncer- visualized by analysing external uncer- profile with the risk appetite (based on results ening the few businesses that haveunder sur- tainties ity of change ► Improved predictability of government and regulatory levels are required andat Many business people changes ► Fewer operational “surprises” Many business people believe policy cies. The in pressure on business leaders to requirements, Supply chain,Regulatory Competi► Embedding risk-enabled dethe media as a result ofbelieve their policy tax arrangements, vived since dollarization. tainties government economic politainties (Market volatility, strategies and goals), and results necessary toatand harness the economic decline. This ► Reduction of uncertainties changes government and regulaadapt isrealso rising.on The need toleaders improve and Physical environment) and cision-making insightsrisk-enabled into the actual government regulatory levels are required and which prompts the question of how best toThe Many business people believe policy cies. pressure business to tion, requirements, Supply chain, Competi► Embedding de► Fewer operational “surprises” explains why captains ofthe industry awaitdecline. the impact the economic viability of tory levels required and necessary on company visibility also rapidly internal uncertainties (Strategic intent, of the business. necessary to harness economic This spond and communicate about tax affairs inisthe changes atare government and regulaadapt also rising. Thehas need to improve tion, and Physical environment) and rhythm cision-making insights into the actual can► improve Reduction of uncertainties ofexplains the government’s initiatives in social and ecoinvestments (increased risk/reward totory harness the economic decline. This increased. Sadly, the ability to recognize Operational Processes, and People). The EY suggests using a basis that concaptains of industry await the impact event of levels awhy crisis emerging. are required and necessary on company visibility has also rapidly internal uncertainties (Strategic intent, rhythm of the business. can improve the economic viability of nomic transformation, and services playand growth opportunities) explains whythe captains of financial industry await and manage the uncertainties embedorganisational risk thinking shouldThe be siders a fuller using rangeaof performance of the government’s initiatives in social ecoIn the past, many companies have toSadly, to harness economic decline. Thisandtended increased. the ability to recognize Operational Processes, and People). EY suggests basis that con- balance investments (increased risk/reward ers look to the new governor of the central bank ► Enhanced risk monitoring the impact of the government’s initiaded in these challenges is not growing characterised by:issues, namely growth, optimization nomic transformation, and financial services playavoid revealing much about their tax affairs. explains why captains of industry await and manage the uncertainties embed- organisational risk thinking should be siders a fuller range of performance balance and growth opportunities) for new policies to ensure their of survival. Notwithtives in and economic transforand being applied at the same pace. One ► Risk line of sight from board and protection of the business. The suc- reducing inefficiency in reaction and ers look tosocial the the central bank the impact ofnew the governor government’s initiaded in these challenges is not growing characterised by:issues, namely growth, optimization ► Enhanced risk monitoring Some have hidden behind the inherent comstanding these level efforts, the question mation, and macro financial services players needs to scan the business landscape to operational execution; cess of any business is tied to how well redirection of resources (potentially refor newof policies to ensure theirand survival. Notwithtives in social and economic transforand and beingaapplied at the same pace. One ► Risk line of sight from board and protection of the business. The suc- reducing inefficiency in reaction and plexity tax management planning, remains ‘Are corporates playing their part at micro look to the new governor ofefforts, the central to see same mistakes of poor lending ► Risk activities linked to profit these three are done, the specific bal- ducing costs, improving cash flow) standing these macro level the question mation, and the financial services players needs to scan the business landscape to operational execution; cess of any business is tied to how well redirection of resources (potentially refew have even engineered additional complexlevel to survive uncertainties?’. The old adage ► Improved ability to exbank for new policies to ensure their by banks, lack of innovation in and loss, balance sheet and key business ance among them being based on the remains ‘Are corporates playing their part at practices micro look to the new governor of the central to see same mistakes of poor lending ► Risk activities linked to profit these three are done, the specific bal- ducing costs, improving cash flow) ity to give themselves further protection. This that business management is risk management is satisfied, using single method ning with the current period. No separate performance obligations. Background transaction price to each separate ecute strategic plansa improving comsurvival. Notwithstanding these macro retailing, uncoordinated products at fuel metrics; company’s risk appetite. In this regard, level survive the uncertainties?’. The adage bank for new policies to ensure theirold practices by banks, lack of innovation in and loss, balance sheet and key business ance among them being based on the ► Improved ability to exwill noto longer be tolerated. Instead companies becomes more relevant in this uncertain best depicts the and pattern of the restatement of the comparative The determinant management for identi- performance obligation onatauncerrela- that petitiveness (revenue profitability level efforts, the question remains ‘Areenvirongarages, undifferentiated products in ► keyUncertainty the starting point for looking that business management is risk management is satisfied, using a single method ning with the current period. No separate performance obligations. Background transaction price to each separate survival. Notwithstanding these macro retailing, uncoordinated products at fuel metrics; company’s risk appetite. In this regard, ecute strategic plans improving commust be prepared to become more transparent. ment. The little things that corporates do, need to be etc of control over time. periods will be required under this fying a separate obli- tive stand-alone selling price The International Accounting improvement) corporates playing their part at micro hotels to notice that business leaders embedded withinperformance processes; tainties is clearly the strategic and baop- transfer becomes more relevant in this uncertain best depicts the and pattern of the restatement of the comparative The determinant for identi- sis, performance obligation onatauncerrela- that level efforts, the question remains ‘Areenvirongarages, a undifferentiated products in ► keyUncertainty the with startinglimited point for looking petitiveness (revenue profitability Adone large that takes advantage right. approach, as long goodmanagement or service, Standards Board (IASB) and US plans. In aexceptions. risk-enabled One view The net benefit is that risk-enablelevel toorganisation survive the uncertainties?’. The are notof managing riskas for comparative navigating un- gation ► is whether Business a processes aligned erational ment. The little things that corporates do, need to be etcwill of control over time. periods be required under this fying a separate performance obliThe International Accounting tive stand-alone selling price corporates playing their part at micro hotels notice that leaders embedded within processes; tainties is clearly the strategic and baop- transfer improvement) particular tax break ormanagement structures affairs intoThis In increasingly challenging environment like about the business current bundle, is distinct. A good or exception in the standard permits Financial Accounting Standards Contract costsrisk and other apof the business, relative to those plans ment, by bringing insights directly oldan adage that business isitsdisclosures certainties. represents both aperigrave or viaarisk appetite; done right. approach, as long as comparative gation isiswhether aif good service, Standards Board (IASB) US sis, withplans. limited One level toway survive the uncertainties?’. Theexplain are risk for un- service Business processes aligned erational In atoexceptions. risk-enabled view plication The net benefit is that risk-enableaZimbabwe, certain must be prepared to why organizations need toand continually ad-not od’s revenues under existing IFRS distinct the or customer entity toneed allocate Board (FASB) (collectively, the guidance organizations ask: a variable to business processes, is a game changer risk management becomes more relethreat tomanaging companies and anavigating very signifi►► Risk profile rationalized and an In an increasingly challenging environment like disclosures about the lost. current or bundle, is distinct. A good or amount Financial Accounting Standards exception in the standard permits Contract costsinand other apold adage that business management is are certainties. This represents both aperigrave can viaarisk appetite; of ►the business, relative to those plans which ment, by insights directly they have made those choices. In much included. benefit from the good or serofWhat consideration, together Boards) have issued new requirevance their risk management practices, building on are the upside opporwillbringing be seen risk business results. vant in this uncertain environment. The cant setthe of opportunities optimized; Zimbabwe, organizations need toneed continually ad-revenues od’s under IFRS vice service distinct the customer Board (collectively, the an entity toneed allocate a variable guidance risk management becomes more relethreat to companies andexisting a very signifiRisk profile rationalized and with organizations to ask: toIn business processes, is a game changer same way that the companies explain their reits own orifresource together with any subsequent changes in plication ments for(FASB) recognising revenue unaddition to the five-step modthe traditional foundation of protection and comtunities (growth) and downside threats little things that corporates do, to ►► on is Capital and allocaare included. can benefit from theand good or ser- that Boards) have issued new requireamount ofWhat consideration, together vance their risk management practices, building on vant in right. this uncertain environment. The cant set of lost. optimized; ► variable are the upside opporwhich be seen in business results. muneration policies, so they should be able toopportunities readily available resources consideration, to one el, der both IFRS and US GAAP. The thewill standard specifies how to The five-step model pliance into an expanded focus on risk factors that (protection)? Risk management approaches therebe done Understanding uncertainty means other tions are risk-adjusted; vice ongood its own or resource together with ments for recognising revenue unwith subsequent in account In addition to the modthe traditional foundation of protection and challenging comlittle things that corporates do, need to Capital and allocatunities (growth) and downside threats explain their tax policies. or service is separatemore (but notor all) performance new standard is thechallenging final product the incremental costs impact decision-making and operational ► any Where how ischanges uncertainty fore needfor to change tofive-step better reflect the In strategic an increasingly enviour basic assumptions and ►►the Business processes and ena- or other readily available der both IFRS US GAAP. The that variable to one el, the management standard specifies how to The five-step model pliance intoright. an expanded focus risk factors that bemore done Understanding uncertainty means tions are risk-adjusted; and resources (protection)? Risk approaches thereAs companies are increasingly expected to identifiable from other promises obligations, ifconsideration, specified criteria are of ofronment than a and decade ofonefforts obtaining a contract and the The principles in the tostandard introduced (strategic choices, processes, operating environment in Zimbabwe like Zimbabwe, organizations and envisioning new ways view the ly bling technologies aligned performance. Organisations have developed new and good or service istoseparatenew standard is athe finaltheir product or more (but notorall) account for therelated incremental costs impact strategic decision-making and operational In an increasingly challenging envichallenging basic assumptions ► the Business processes and ena- met. ► Where howperformance is uncertainty costs fore need to change to better the the contract. Each distinct and extensive deliberations by the directly to reflect fulfilling will be applied using five-step give back more to society, they also need to ourand external influences, etc.)? today. What carried companies through need to continually advance risk business-world, to a respond ap- in Local businesses need be good truly products, new operating practices and new conly identifiable promises ofronment more than a decade of efforts if specified criteria are a of obtaining agood contract and the Theenvisioning principles inways the standard like Zimbabwe, organizations and new toto view the or bling technologies aligned introduced (strategic processes, operating environment in Zimbabwe performance. Organisations have developed new service willtofrom be aother separate per- obligations, When determining stand-alone Boards. contract. Provided those costs model. Entities will need exerbe able to show the public exactly how they are ► How can choices, management best in the past is not enough anymore. management practices, on the propriately. Uncertainty is where risk ‘risk-enabled’ survive uncertainties cepts in service delivery tobuilding enhance business perin contract. Each distinct and extensive by the met. costs directly will be applied using arespond five-step need to continually advance risk business-world, and to ap- formance Local businesses need be good truly externalprices, influences, today. What carried companies through products, operating practices and conobligation. A toseries of selling an etc.)? entity use are The core principle IFRS 15 isnew expected torelated be recovered, they judgement when calibrate and quantify thosemust risk expoEY believes that the keytoto fulfilling success of traditional foundation ofof protection and starts andto where levers toconsidering performance andthe current market realities. doing this. Companies need to have acise policy formance asnew seen indeliberations increased usetheir of mobile monor service willtoorbe a separate Boards. When determining stand-alone athat Provided those costs model. Entities will need to exermanagement practices, thepositively propriately. is where risk ‘risk-enabled’ survive uncertainties ► to the How can management best can incontract. the past capitalised islies not good enough anymore. cepts in service delivery tobuilding enhance business pergoods services thatperare observable information, where that revenue ishow recognised toon debe and subsethe terms thebe contracts and all distinct sures business (uncertainty plus change in: compliance into an expanded focus on improvement can found. ****** ey, food and retail mini-shops, smart-metering in explain clearly they impact aofUncertainty formance obligation. series of available, The core principle IFRS 15 is relevant selling prices, an entity must use quently are►EY expected to be they cise judgement when traditional foundation ofof protection and starts and where toconsidering performance and market realities. calibrate and quantify those risk expobelieves that therecovered, keyview totested success of formance as seen in usegoods ofdecimobile montherisk-enabling sameAand otherwise an entity will pict the transfer ofincreased promised amortised and for facts andlevers circumstances. vested interest)? Rethinking the of risk to risk factors that impact strategic REPM incorporates changes to risk substantially EYcurrent believes that ahave busielectricity services, and ‘buy-local’ campaigns. country’s social and economic prosperity. This distinct goods or of services are need that revenue recognised to deobservable information, where can be along capitalised and subsethe terms therelies contracts and all the compliance into an expanded focus on improvement can be found. ****** sures business (uncertainty plus thatmore change liesthe in: lines of same pattern transfer to the to the use estimates on or services toisamini-shops, customers in an ey, food and retail smart-metering in ► to How can what thebased business is impairment. be understandsion-making and operational performanagement on direct links ness is akin to introducing keythat insights But amid this world of change, many organizashould be part of broader communication pro- ofthat substantially thetreated same and have pict the transfer of overall promised goods available, otherwise an entity will quently amortised and relevant facts andthe circumstances. risk factors that impact strategic deci- Step REPM incorporates changes believes that risk-enabling aat busivestedbe interest)? ►the uncertainties Rethinking the view of riskfor to canway. be as a single available information. amount thatto reflects the considApplication guidance istested provided 1: Identify contract(s) electricity services, and ‘buy-local’ campaigns. doing optimized to ensure maximum ing that drive variabilmance. Organisations have developed to ongoing performance metrics to to risk in- customer in aEY practical For example the reasonably tions continue operate using risk management gram that shows the economic impact of the pattern of planning transfer to the Step or services tonot customers inmay anorganizaneed use estimates on impairment. sion-making and operational performanagement thatability reliesto onreact direct links performance nesssame is akin to introducing key insights ► 5:tofrom How can what thebased business is in bethe more alongresults thetolines of understandobligation provided Recognise revenue when eration to which the expects standard assist entities in benefit management efforts and ity of business new products, new operating practices crease corporates quickstrategic oversight and level: But amid this world ofentity change, many programs that have evolved and notthe prothe company: the scale of investment; numcustomer canway. beare treated as a single amount that the reasonably available information. Application guidance is provided Step Identify criteria met. as)be the entity satisfies amaximum perfor- applying toand bejobs entitled inreflects exchange for those its requirements to comwith a1:customer mance. Organisations have developed to before ongoing performance to in- specific inA. a practical For example at the (or doing optimized to ensure ing that drive variabilresources? ►the uncertainties Moving away from an apnew concepts in service delivery to ly, the die is the cast. contract(s) Itmetrics also focuses Enhance risk governance tions continue to operate using risk management tect them from today’s risks. For aconsidlarge number of ber of created and other key drivers. provided eration to which the entity expects Step 5:obligation Recognise when in standard to assist entities in goods orthat services. arrangements, including: new products, new operating practices crease corporates ability to react quick- performance strategic oversight andresponsibilities planning level: — mance benefit from management and mon itythe of business results Together, the first revenue threeefforts questions proach of simply “applying risk manenhance business performance as seen the shift to value creation, creating structure, roles obligation and programs have not evolved may proorganizations, risk management isand still seennot ason only Tax should form part of this communication. In today’s world, where you are Anas) entity satisfies a performance warranties; rights of reContracts may be written, verbal Step Determine the transare expectations met. toand benew entitled inofto exchange for those the entity a perforapplying its requirements comwith customer will provide a goodsatisfies view of the compa- licences; agement” toward one of inclusion of risk in increased use mobile money, food an offensive front helps businesses bringing clarity on and (or concepts indemonstrate service to ly, before the die that is cast. It also focuses specific A. 3:criteria Enhance risk governance resources? ► Moving away fromtoan apthem from today’s risks. Fordelivery a large number of aare atect high-level compliance exercise to educate the Companies need that they should never getprice in theand way of where by transferring control principal-versus-agent conor implied by business Scope action goods oraudit services. mance mon arrangements, including: ny’s riskobligation profile a picture of the types, turn; insights directly into business processes and retail mini-shops, smart-metering stay ahead based on insights about unoversight ofroles risk exposures. This is foenhance business performance as on the shift to customary value creation, creating structure, responsibilities — obligation Together, the— first three questions proach of simply “applying risk manboard and committee; asminimum; aisresult, there are organizations, risk management stillseen seen as only doing more than the bare they need of a promised good or service to the siderations; options for additional practices, but must be enforceable levels and potential impacts of the ag► Understanding that in electricity services, and ‘buy-local’ certainty and how to manage it to their cused on driving performance rather An entity satisfies a performance licences; warranties; rights of reContracts may be written, verbal Step 3: Determine the transin increased use of mobile money, food an offensive front that helps businesses bringing clarity on expectations and will provide a good view of the compaagement” toward one of inclusion of risk you need to be. It is essential not just often no clear lines of sight from the boardroom to high-level compliance exercise educate the as a toabe able to judge what’s right to and be seen which could occur over goods ordirectly services breakage. and have commercial substance. IFRS 15audit establishes a as five-step The transaction is strategic gregate exposures represented infrom management must be aligned with the campaigns. advantage. than primarily reviewing key This risks. obligation by transferring control turn; principal-versus-agent conor implied customary business Scope action price and retail mini-shops, smart-metering stay ahead onthat insights about unoversight of risk exposures. isthe fo- customer, ny’s riskrisk profile — aThey picture of the types, insights intoand business processes Itby is true the volatility and velocity of change toprice support decision-making. also runs the board to operations. the operations themselves. For some, risk manageboard and committee; a result, there are to grow the business and improve good citizen. Otherwise, companies should not based time or at a point in time. A perThe model applies to each contract model that will apply to revenue amount of consideration to which the organizations’ current plans. In our entirety of the business — growth, proBut amid this world of change, many By embedding risk management into B. Develop a practical and of a promised good or service to the siderations; options for additional practices, but must be enforceable in electricity services, and ‘buy-local’ certainty and how to manage it to their cused on driving performance rather levels and potential impacts of the ag► Understanding that risk are high thanks to uncertainties in government have an approach that highlights upside as well The rhythm of the business can be visualized by ment amounts to ticking the regulatory guidelines no clearif, lines of sightor from the boardroom to beoften surprised sooner later, their with behaviour but to sustain it the formance obligation isof satisfied at customer once isperformance, probable earned from acontinue contract with a cusentity to as be entitled and Conclusion experience, this clarity linkage betection and optimization organizations toFor operate using business processes, organizations canandan “working” risk appetite — in setting the enabling customer, which could occur over goods or services breakage. and have commercial substance. IFRS 15 itestablishes a some, five-step The transaction price is the campaigns. advantage. than primarily reviewing key risks. gregate risk exposures represented infrom management must and be aligned with the economic policies. The pressure on business leaddownside risks, organizations to asanalysing external uncertainties (Market volatiland for others resides only in their corporate re-afinds It is true thatitthe volatility velocity ofexpects change to support strategic decision-making. They also runs the board to operations. the operations themselves. risk manageattracts unwanted attention. If a company atime point inatrather time unless it plans. meets one the entity will collect the considtomer (with limited exceptions), includes: IFRS 15 isforbusiness a Business significant change tween and operations with unQuestions risk management programs that haveguidelines create a REPM program that becomes tone direction how risk is intelong term. Which isDevelop where our strong orstrategy a point in time. A In perThe model applies to each contract model that will apply to revenue amount of consideration toact which But amid this world of many risk management into need B. and practical andopportunities the organizations’ current our entirety of the — growth, proers tohigh adapt is also The to improve on onasess and upon than having ity, Regulatory requirements, Supply chain, Comports, with nothing in practice. are thanks torising. uncertainties in government have an approach that highlights upside as well The rhythm of the business can beLeaders visualized by ment amounts to ticking thechange, regulatory itself in this situation, the first thing toeration doBy isembedding esthe following criteria, in which toand which it will entitled. regardless of the type revenue • entity An estimate of any varia current IFRS. Although it certainty variables creates an awareness 1.Physical Does your company view not evolved and may not protect insights value-driven. Organizagrated into leadership formance obligation satisfied at from with once itbe is probable earned from contract with a them cusan expects totax beconsiderations, entitled Conclusion organizations continue toof operate using business processes, organizations canmulti-disciplined “working” risk appetite —pass setting the of experience, this clarity linkage betection and optimization company visibility haspressure also rapidly increased. them by and unnoticed. In order to fully apprecipetition, and environment) and internal team of and economic policies. The on business leadas downside risks, enabling organizations toisofasanalysing external uncertainties (Market volatiland for others it a resides only in their corporate re-a customer tablish all of the facts and correct key inaccuracase, it is satisfied over time: In evaluating whether collection is transaction or the industry. The ble consideration (e.g., it may vary provides more detailed applicawhich really jumpstarts the process of risk management as a key component from today’s risks. For a large number of tions then have greater visibility into the and how much and what type of risks a point in time unless it meets one the entity will collect the considtomer (with limited exceptions), includes: IFRS 15 is a significant change risk management programs that have create a REPM program that becomes tone and direction on how risk is intetween strategy and operations with unQuestions for Business Leaders Sadly, the ability to recognize and manage the unate why a new paradigm in risk management is uncertainties (Strategic intent, Operational ProRisk Management Shift ers to adapt is also rising. The need to improve on can sess and act upon opportunities rather than having ity, Regulatory requirements, Supply chain, Comports, with nothing in practice. accounting professionals help. cies. Ideally, companies should to crises • The customer simultathe entity would considstandard’s will also due to into rebates bonuses), us- of tion guidance, entities willrisk need to risk-enabling a in company. inPeople). managing business organizations, risk management isrespond still probable, health ofto the business, and be better inforare forbusinesses busithe following criteria, which eration which it embedded will entitled. regardless of the type revenue • required An estimate of any varia from current IFRS. Although it not evolvedrequirements and may not of protect them insights and value-driven. Organizagrated leadership considerations, certainty variables creates anin awareness 1.Physical Does your performance? company view certainties in these challenges isand/or not oracceptable important, need to focus on the real cesses, The organisational thinkcompany visibility has also rapidly increased. them pass by unnoticed. In order to fully apprecipetition,and and environment) and internal as apply quickly as possible – but not until er they have With in-depth knowledge and neously receives and consumes only the customer’s ability and to the recognition and measing either a probability-weighted use judgement in applying its EY believes that by integrating risk 2.more Is there by:continuity of underseen as only a high-level compliance mation to support strategic decisionness, enabling a clear view of how risk case, it is satisfied over time: In evaluating whether collection is transaction or the industry. The ble consideration (e.g., it may vary provides more detailed applicafrom today’s risks. For a large number of tions then have greater visibility into the and how much and what type of risks which really jumpstarts the process of risk management as a key component Global organisations have realised the need to get growing and being applied at the same pace. One issue — uncertainty. ing should be characterised Risk Management Shift Sadly, the ability to recognize and manage the unate why a new paradigm in risk management is uncertainties (Strategic intent, Operational Proestablished keythefacts and arguments thatto benefits provided by the en-Riskrequirements, intention pay consideration urement ofthe gains losses the expected value the most likely part, because the management directly into thesimultaprocesses standing in from thein risks associated with exercise educate board and audit making. also have an approach appetite isrebates used inor capital allocation and the • need customer probable, the entity would considstandard’s requirements due tocan bonuses), ustion guidance, entities need to experience, we help your organizations, riskand management isalso stillresult health the business, and better inforare required and/or acceptable for busirisk-enabling company. in managing business performance? more from to risk management aswill aon direct of ofThey needs to the scan the business landscape see same So the big question for companies how much line of sight board towill operational certainties embedded in these challenges is not or important, businesses to The focusais: in on the real cesses, and People). The organisational risk thinkthey need toasmake. The company should also tity’s performance as the entity when due. sale of some non-financial assets amount, whichever better predicts use ofplans estimates is more extensive. themselves, companies will see much your and objectives, from strategic committee; a result, there are often that highlights upside as well as downoperations. neously receives and consumes er only the customer’s ability and apply to the recognition and measing either a probability-weighted use more judgement in applying its seen as only a high-level compliance mation to support strategic decisionness, enabling a clear view of how risk EY believes that by integrating risk 2. Is there continuity of underlearning from the recent global turbulent times. Ormistakes of poor lending practices by banks, lack is it worth to understand and reduce that uncerexecution; business chart a better tomorrow. Global organisations have realised the need to get growing and being applied same pace. One issue —risks uncertainty. ingnot should be characterised by:identify one individual who take responsibility performs An entity may combine two orat the that are not an output ofthe the enthe of consideration toanother The potential toand revenue more impactful risk management, planning to capital allocation operano clear lines of sight from boardside risks, enabling organizations to uncoordinated asC.amount emerging assothe benefits provided by the intention toinnovation pay the consideration urement ofeducate gains and losses the result expected value theSoallocation most likely requirements, in part, because the exercise to the board and audit making. They also have anbusiness approach appetite isIdentify used inor capital and management directly into the processes standing in thechanges risks associated with ganizations are moving towards insight-driven of in retailing, products tainty? Phrased way, what if you could activities linked to profit and loss, risk management asan aon direct of needs tothat scan the landscape to see same the big question for companies is: how much en-Risk Riskrecognition line ofexecution? sight from board to operational formore thefrom communications efforts. In most cases, • The entity’s performance more contracts are entered tity’s ordinary activities (e.g., sales which the entity will be entitled for some entities may measured by the level of risk managetional room to the operations themselves. For sess and act upon opportunities rather ciated with strategic plans —modifying tity’s performance as the entity when due. sale of some non-financial assets amount, whichever better predicts use of estimates is more extensive. and performance-oriented approach to risk manat fuel garages, undifferentiated products in hotels increase the predictability of your business outbalance sheet and key business metrics; committee; as a result, there are often that highlights upside as well as downoperations. themselves, companies will see much your plans and objectives, from strategic learning from recent global turbulentto Ormistakes of poor lending practices by banks, lack and is itaddress worth emerto understand and that uncerexecution; Visit ey.com this should bethe the CEO. Assigning atimes. more creates orreduce enhances an asset that into at or etc near the same time with ofsome, property, plant and equipment). • are The effect of the time valbe significant, soallocation it is important for ment activities but bymanagement, enhanced busi3.potential Incapital addition to protecting your risk management amounts than having them pass by unnoticed. In the processes to identify performs Anjunior entity combine two or that are not an output ofthe the enof emerging consideration toanother The changes toand revenue agement, one that becomes intrinsic toinsight-driven the business tomay notice that business not products managcomes? And,assoimportantly, how can you move management embedded within moreway, impactful notUncertainty planning to operano clear lines of sight from boardside risks, enabling organizations to leaders asC.amount Identify risks ganizations are moving towards an of innovation in retailing, uncoordinated tainty? Phrased what ifrisk you could Riskentities activities linked to profit and loss, or contact: executive to the role can give an impression that the customer controls as the asset the same customer, and account ue of money, if there is a financto start assessing the imness results, i.e., performance. This does business, is your risk management proticking the regulatory guidelines and for order to fully appreciate why a new pargent variables and uncertainties that can • ofmore The entity’s more contracts that are entered tity’s ordinary activities (e.g.,processes. sales the entity will be outcomes entitled recognition for entities may and isperformance-oriented embedded in key business We and ing risk for navigating uncertainties. those to capturing more the room to the operations themselves. sess act upon opportunities rather which ciatedThis with strategic plans —modifying measured byand the level ofperformance risk manage-processes; tional execution? and approach toFor risk manat fuel garages, undifferentiated products inreprehotels increase the predictability your business outsheet andbenefit keysome business metrics; the company isplant not the sufficiently is created enhanced for them as a single contract, proExtensive disclosures will beissue reing component thatupside is significant to uncertainty? pact immediately. not mean the dissolution ofasset ERMthat pro-balance viding direct your growth efothers it resides onlytaking in their corporate adigm inor risk management isNigel important, impact business aspirations, and learnForsgate: nigel.forsgate@zw.ey.com creates oror enhances an into near the time with of property, and equipment). • are The effect of the time valbe significant, so it to is important for call that risk-enabled performance management sents both asame grave threat toleaders companies and a very part of that Gone are theenhanced days aligned via risk appetite; some, riskthat management amounts to business thanat having them pass by unnoticed. In processes to identify and address emerment activities but by busi-Business 3. processes In addition to protecting your agement, one becomes intrinsic to the etc to notice that business not managcomes? And, importantly, how can you move Uncertainty management embedded within • The entity’s performance vided they meet specified criteria. quired, including disaggregation of the contract seriously. grams, but rather the evolution of ERMRiskentities forts as well? reports, with nothing in practice. businesses need to focus in onaccount the real ing of how to recognize new emerging Maxwell Mangoro: maxwell.mangoro@zw.ey.com the customer controls as the asset the same customer, and ue money, if there is a financto start assessing the im(REPM). significant set of opportunities lost. when corporates blamed the local currency, the profile rationalized and optimized; ticking the regulatory guidelines and for order to fully appreciate why a newuncertainties. par- gent variables and uncertainties that can ness results, i.e., performance. This doesprocesses; business, is your risk management proand is revenue; embedded in to key businessabout processes. We ingon riskthe for navigating reprethose outcomes to capturing more and more of the does not create anhigher asset withof an Depending specific facts total information • inThis The fair value of any nonSubmitted Tinei Muwandi of EY . This is a new model with levels ef4. Isby risk management integratRisk Management Shift issue — uncertainty. ones advance. When itit resides comes dealing with media, Fatima Khan: fatima.khan@zw.ey.com, Atothers EY, we believe a paradigm shift inreriskthe manmeans challenging bank, and customs for their and resource allocations are risk-efisto created or for them asUnderstanding a single contract, proExtensive disclosures will be ing component thatreserve is significant to the pact immediately. only in their corporate adigm in risk management isuncertainty important, impact business and learnnot mean authority theenhanced dissolution of ERM pro-Capital viding direct benefit tovia your growth call that risk-enabled performance management sents both aagrave threat to companies and a veryaspirations, that uncertainty? are processes aligned risk appetite; alternative usebusiness to the thedays entitywith andBusiness andSocircumstances, modification performance obligations; changes cash an of the EY publication IFRS Develfectiveness Gone and impacts, edextract into the “rhythm” of your business Global organisations have realised the the big question for companies D. consideration Inclusion ofupside formalpart andofspecompanies need to be open and approachable. Ahmed Lunat: ahmed.lunat@zw.ey.com agement is necessary for local business leaders our basic assumptions and envisioning new ways failures in one way or another. Inflation is at its adjusted; and • The entity’s performance vided they meet specified criteria. quired, including disaggregation of the contract reports, with nothing in practice. businessessignificant need to focus in on the real lost. ing how to recognize newcorporates emerging blamed grams, but rather the evolution ofERMRiskforts as well? (REPM). set as of when the local currency, the profile rationalized and optimized; entity has anappetite enforceable right opments be accounted for aunderstand separate cific in contract asset and ac- may Therisk transaction isand generally Issue 80: IASB andlens FASB new inclusion of risk sensitivities processes, versus a later orissue add-on? need to get more from riskliability management is: how much is it worth toopportunities tolerances,price limits thresh- the They have to decide how much information they seeking to survive uncertainties. Significant to view to respond aplowest in years, the dollar remains in use,an and local and enabling technologies does notmodel create asset with Depending on the the business-world, specific facts andones total revenue; information about addi• The fair value of any nonSubmitted Tinei Muwandi of EY . This is Risk Management Shift issue — uncertainty. in advance. to a new higher levels of an ef-Business 4. processes Isbyrisk management integratAtaEY , balances we believe athe paradigm shift in manUnderstanding uncertainty reserve bank, and the customs for their process toCapital and resource allocations are riskto payment forwith performance comcontract or that a modification of the means count between periods not for credit risk. Howrevenue recognition standard — IFRS 15. early in theauthority strategic planning 5. Are you using quantitative as direct resultto of learning from therisk and reduce uncertainty? Phrased oldsadjusted aschallenging performance metrics in operaare going toorganisations give media and then stick to tional benefit lies in connecting risk management propriately. Uncertainty is where risk starts and bourse is giving real returns. The new buzzword is aligned alternative use to the entity and and circumstances, a modification performance obligations; changes cash consideration an extract of the EY publication IFRS DevelGlobal have realised the So the big question for companies D. Inclusion of formal and spefectiveness and business impacts, with ed into the “rhythm” of your business Address: tostrategic date original contract. and keyglobal judgements and estimates. ever, entity can include This, and IFRS publications availagement is necessary for local business leaders ourwhat basicifassumptions and envisioning new ways failures variable inprovide one waypleted or another. Inflation is at its adjusted; andother level-set options. analytics as effectively as youare could be recent turbulent times. Organianother way, you could increase tionalan reviews. These tolerances that. Giving away too much at the wrong time to profit and loss and/or cash flow — two areas that whereislevers toas performance improvement can be ‘liquidity’. Local businesses need to be the entityofhas an enforceable right may be accounted for aunderstand separate inneed contract asset and liability acTherisk transaction is generally opments Issue 80: IASB and‘risk-enabled’ FASB newto to get more from risk management is: how much it worth toAngwa cific tolerances, limits and threshinclusion risk appetite sensitivities processes, versus atruly later lens orissue add-on? City, Corner Julius Nyerere Way/ Kwame Revenue is recognised lineBusiness consideration in price the transaction able in full on www.ey.com/IFRS. Risk tolerances are to manage risks to the business? zations moving towards an insightthe predictability your business outindicators forapensuring alignment of seeking toare survive uncertainties. Significant addito viewofthe business-world, and to respond lowest in years, the dollar remains in use, andintegrated local in with processes and enabling technologies could enflame the story. At the same time, comdemonstrate value creation. Another large contract benfound. This ushers in the new paradigm — moving away process survive uncertainties andyou current market realities. to payment for performance comor a modification of the count balances between periods not adjusted for credit risk. Howrevenue recognition standard — IFRS 15. as a direct result of learning from the and reduce that uncertainty? Phrased olds as performance metrics in operaearly in the strategic planning to 5. Are using quantitative Nkrumah Avenue, Harare the pattern of transfer. Rev-aligned6. price only to the extent itdesired is giving highly Effective date Stepcus2: Identify the separate appropriate performance Does leadership have a clear driven and to performance-oriented ap- their comes? And, importantly, how can you operational activities with risk tional benefit lies in connecting risk keep management propriately. Uncertainty is where risk starts and bourse real with returns. The new buzzword is metrics, panies need make sure they efitand lieskey in global actively integrating risk management REPM incorporates changes ever, to riskan managefrom thevariable status quo or informational and complipleted tostrategic date original contract. judgements and estimates. entity can include This, other IFRS publications are availrecent turbulent times. Organianother way, what if you could in increase tional reviews. These tolerances provide level-set options. analytics as effectively as you be that is clear allocated to perforprobable that abe subsequent change Orand email: tinei.muwandi@zw.ey.com, performance obligations the 4 thus ensuring line-of-sight frombusinesses view ofneed the riskcould profile proach toside risk management, one thatareas move those outcomes toto capturing more exposures and yields improved results enue Tel: +263 750905/ 750979 to profit and loss and/or cash flow — two that where levers performance improvement can ‘liquidity’. Local tocompany’s be truly ‘risk-enabled’ to tomers on and informed. directly intoare themoving business processes themselves, ment that on direct linksconsideration to ongoingfor perance-focused risk to new level, article willinbe continued on the next ediRevenue is arecognised in This line in the transaction able full on www.ey.com/IFRS. zations towards antoinsighttheasmore predictability of relies your business outindicators ensuring alignment of management Risk tolerances are satisfied integrated with to manage risks to the business? mance obligations at a in estimated variable consideraAddress: Angwa City Building, Corner Julius contract The standard will apply anstrategy. across the breadth of its operations? becomes intrinsic to the business and and of the upside part of that unpredictability. demonstrate value creation. Another large benfound. metrics to increase corporates ability to Thisisushers in the newtoparadigm — moving away survive uncertainties and current market realities. There are certain things to avoid when there opposed to being a “bolt-on” activity that gets apformance which directly linked performance, based on tion of the EY page on 7 November 2014. with the pattern of be transfer. Rev- Nyerere price only to the extent itdesired is highly Effective date Step 2: Identify the separate driven and performance-oriented ap- certainty? comes? And, importantly, cancoryou tion operational activities with risk point appropriate performance metrics, 6. Way/ Does leadership haveAvenue. a clear in time will recognised will not result in a significant Nkrumah nual periods beginning onprocesses. or Conclusion 7. Is Kwame your risk management embedded in keyintegrating business Gone are the dayshow when Re-evaluated risk and operaefit lies actively riskafter management REPM incorporates changes toE. from the status quo or informational and compliisplied aisproach crisis. and denial can performance be comlater.intoArrogance react quickly, the die is cast. Itrisk alsomanagefocuses harnessing uncertainty. enue that is clear allocated to toward perforprobable that ayields subsequent change Or email: tinei.muwandi@zw.ey.com, obligations in the risk management, one that move those outcomes tobefore capturing more exposures andlinkages improved results when thus ensuring line-of-sight from view of62,the company’s riskflow profile control of the good or serrevenue reversal. P O Box Harare, Zimbabwe. Tel: 1 January 2017 and early adoption Once the contract has been idenMoving an organization a connected to your P&L, cash and We call that risk-enabled performance porates blamed the local currency, the tional process to better isolate directly into theOften, business processes themselves, as that ment that to relies oncreation, direct links to ongoing perance-focused risk management to a new level, This article will be continued on the next+263 edimon pitfalls. companies pretend REPM is about creating tangible value. Itcontract can on shift value an offensive If corporates want REPM to become intrinsic mance obligations satisfied at a Address: in estimated variable consideraAngwa City of Building, Corner Julius The standard will apply to anbecomes intrinsic to the business and and more ofthe the upside partto ofauthorithat un-creating predictability. strategy. acrosscritical the breadth its operations? vice underlying the performance 4 750905/ 750979 is permitted. Entities can either tified, an entity will need evalurisk-enabled orientation takes time, other metrics? management (REPM). reserve bank, and the customs potential for cascading incidents: outopposed to being a “bolt-on” activity that gets apformance metrics to increase corporates ability to which is directly linked to performance, based on tion of the EY page on 7 November 2014. they don’t have a problem or avoid tackling it in drive more robust analysis of investment decisions, front that helps businesses stay ahead based on into their business, then business leaders need to To find out more about Risk Management, contact point in time will be recognised tion will not result in a significant Nyerere Way/ Kwame Nkrumah Avenue. nual periods beginning on or after is embedded in key business processes. certainty? Gone are the days when corE. Re-evaluated risk and operaConclusion 7. Is your risk management obligation transferred. adopt a ,full approach thetheir terms and busiStep 4: focuses Allocate the transacand the firsthas question is “whatIfis the the If one of these questions has been anAtlater. EY we retrospective believe a paradigm shift in ate ty for failures incustomary onebefore way orthe anothsized catastrophic operational events plied react quickly, die is cast. also harnessing uncertainty. the that itrisk-enabled will blow over. This is a porates mistake, helping improve returns on capital investments, as practices sights about uncertainty and toItmanage it linkages to think aboutperhow business is accomplished, theis Tagarira when control ofbegin?” the good orsatisser-a Mutenga: revenue reversal. Pswered O Harare, Tel:you +263 1hope January 2017 and early adoption Once the contract has been idenWe call that performance blamed the local currency, thehow tional process better Moving an toobligation organization toward connected to ”NO,” your Zimbabwe. P&L, cashfor flow and performance or a management modified retrospective apness to lowest identify which . Box 62, tion price the of separate right approach with it is time to risk is necessary for local er. Inflation is at its in years, the are often theto results ato series ofisolate cas-want REPM is about creating tangible value. It can on the shift to value creation, creating an offensive If corporates REPM to become intrinsic inwell any crisis, companies need to communicate aspermitted. identifying opportunities to either reduce uncertheir advantage. trueincidents: value-creation cycle of business. Arerevenue busiEmail: tagarira.mutenga@zw.ey.com or eymarvice underlying the performance 4as750905/ 750979 ismanagement Entitiesto can tified, an entity will need toauthorievalu(REPM). reserve bank, and the customs potential forobligations cascading out- life risk-enabled orientation takes time, otheraction critical metrics? fied over time, the alloproach. The modified approach promised goods or services, or a formance We believe that a logical approach to take soon as possible. business leaders seeking survive undollar remains in use, and local bourse cading smaller breakdowns. Focusing drive more robust analysis of investment decisions, front that helps businesses stay ahead based on intothe their business, then business leaders need to Ifketing@zw.ey.com Tothe find out more about Risk Management, contact constantly and clearly, and skating the istainty and project economics. By shifting By and embedding management into business leaders aware of their business drivers? REPM obligation has transferred. adopt aimprove retrospective ate thetheir terms busiStep 4: Allocate transacAt EY ,full we believe a paradigm inover for failures incustomary one wayrisk or sized catastrophic operational events and the first question is “what is the the If one of these questions has been ancated will be overTagarira will allow the standard toapproach beshift apbundle of promised goods oranothserrisk-enabling arecognised company should also certainties. Significant additional benistygiving real returns. The new buzzword on operational uncertainties helping improve returns on capitaloutcome. investments, as practices sights about uncertainty and how tothe manage it to think to aboutacross howpart business isrhythm accomplished, the sue will rarely have anecessary positive the focus toexisting risk-enabled ness organizations create athe REPM of the of the busiAddress:Mutenga: Angwa City Corner Julius performance is satisor a management modified retrospective ap-manageness toaccounted identify which tion price to the needs separate per. To find risk is for local Inflation is processes, at its lowest in years, the can are often results of amultiple seriesbecome of casright approach toobligation begin?” swered with ”NO,” it is time youNyto the plied to contracts beginvices, would be for as An entity must allocate the period consider theperformance dimensions of: obligation outBuilding, more about Riskfor Manageefit lies in connecting riskperformance management iser. ‘liquidity’. processes and spanning conwell asorganizations identifying opportunities to reduce uncertheir advantage. true value-creation life cycle of business. Arerevenue busiEmail: tagarira.mutenga@zw.ey.com orOeymarment, can concentrate onand uncerprogram that becomes insights value-driven. ness: meaning risk should from erere Kwame Nkrumah P Box 62, Companies must also open flexible. fied over time, alloproach. The modified approach promised goods ornew services, or —a and formance obligations business leaders seeking tobe survive undollar use, and local bourse cading smaller breakdowns. Focusing We believe thatthe aflow logical approach toWay/ take action as soon asAvenue. possible. 1. Organizational risk-enablement, contact Tagarira Mutenga: to profit and loss and/or cash flow — two This remains ushers ininthe paradigm trols can diminish the potential for management tainty and improve project economics. By shifting By embedding risk management into business leaders aware ofcated their business drivers? REPM keting@zw.ey.com tainty holistically, rather than just identifying Organizations then have greater visibility into the uncertainties strategic and business planning, operations, overZimbabwe. Often react quickly to developbeentity-wide recognised overHarare, the will allow the standard tocreation. be apbundle of promised goods or sercertainties. Significant additional isand real returns. The new buzzword on thenot operational across risk-enabling aAlthough company should alsoand Thisthey document was compiled by EY asbenanew source ofgiving general information and notification beevents. construed as a formal professional/legal opinion. reasonable skill care is taken when providing information, ment —will broad approach; Email: tagarira.mutenga@zw.ey.com areas thatmust demonstrate value moving away from the status quo orand should “runaway” the focus toexisting risk-enabled performance manageness processes, organizations can create a and REPM needs to become part of thethe rhythm of sight the busiAddress: City Building, Corner Julius Nymeasuring risks individually. health of the business, and better information sight and monitoring, creating a line of that Tel: +263 4Angwa 750979 ments, and be willing to change their approach. period performance obligation plied to contracts beginvices, would be accounted for as An entity must allocate the efit lies in connecting risk management is ‘liquidity’. processes spanning multiple conconsider the dimensions of: To find out more about Risk EY offer nolarge warranties representations as to informational the information’s accuracy. The information provided is not intended to replace the need legal opinion on interpretation, and consequences of theManagerelevant process suite focus application or750905/ eymarketing@zw.ey.com Another benefitor lies in actively inand compliance-focused F. Comprehensive alignment of for an2.expert/Business ment, organizations can cash concentrate on uncerprogram thatnew becomes insights and value-driven. ness: meaning risk management should flow from erere Way/ Kwame Nkrumah Avenue. P O Box 62, This calls for strong leadership. some to profit and loss and/or flow Inevitably, —into two This ushers in to the paradigm trolsyou can diminish the potential 1. utilising Organizational risk-enablement, contact Tagarira legal, technical or regulatory provisions. E Y does not accept responsibility forlevel, any loss or — damage or any third party may sufferwith asfor a result the information providedpro— of enhancements tied to specific Address: Angwa CityMutenga: Building, Corner tegrating risk management directly risk management a new which functional monitoring processes tainty holistically, rather than just and Organizations then have greater visibility the strategic and businessment planning, operations, overHarare, Zimbabwe. companies this easier than HierarThis document was compiled by EYidentifying asothers. a source of general information and notification should not into beevents. construed a formal professional/legal opinion. Although reasonable skill and care isNyerere taken when providing information, areas thatfind demonstrate value creation. away from the status quo orand risk “runaway” broad entity-wide approach; Email: tagarira.mutenga@zw.ey.com groups of processes; Julius Way/ Kwame Nkrumah the business processes themselves, as ismoving directly linked to performance, based profile — detailedasanalysis of the cesses—and measuring risks individually. health ofcompliance-focused the business, and better information and monitoring, creating alegal lineopinion of sight Tel: +263 4reasonable This document was compiled by EY asinaassource of general information notification should not besight aofformal opinion. Although andHarare, careofisthe taken when chical companies can often struggle with being EY offer no warranties or representations toon theharnessing information’s accuracy. Theand information provided is risk not intended toconstrued replace theasneed for an expert/Specific onthat interpretation, and consequences relevant Another large benefit lies in actively informational and F.and Comprehensive alignment 2.professional/legal Business process suite focus or750905/ eymarketing@zw.ey.com 3. business issues — application Avenue. P 750979 Oskill Box 62, Zimbabwe. opposed to being a “bolt-on” activity uncertainty. company profile can highlight reproviding information, EY offer no warranties or representations as for tolevel, the information’s accuracy. The information provided is intended replace the needprofor an Tel: expert/ opinion on interpretation, legal, technical regulatory provisions. E Y does accept responsibility anybecome loss or damage you or any third party may suffer as a result of utilising the to information provided discrete business challenges impacting +263legal 4 750905/ 750979 that gets applied later. Ifnot corporates want to dundancies, overlaps andprocesses coverage gaps tegrating risk or management directly into risk management to aREPM new which functional monitoring with —not enhancements tied to specific Address: Angwa City Building, Corner application and processes consequences of the relevant legal, technical regulatory based provisions. Y does — not accept analysis responsibility any loss damage you or any third party may suffer as a result of utilising the the business themselves, as is directly linked to or performance, riskE profile detailed of the forcesses andorgroups of processes; Julius Nyerere Way/ Kwame Nkrumah information provided. This document was compiled byEY EY as as aasource of general information and notification and should notshould becan construed asrea formal3.professional/legal opinion. Although andHarare, carereasonable isZimbabwe. taken when This article was compiled by source of general information and notification not be construed asSpecific a formalbusiness professional/legal opinion. Although skill opposed to being a “bolt-on” activity on harnessing uncertainty. company riskand profile highlight issues — reasonable Avenue. P Oskill Box 62, providing EYproviding offer no warranties representations aswarranties to the information’s accuracy. The information provided not intended tochallenges replace theimpacting need forprovided an Tel: expert/ legal opinion on interpretation, and care isinformation, takenlater. when information, EY offer or representations as tocoverage the information’s accuracy. The information not intended to replace the that gets applied Ifor corporates want no REPM to become dundancies, overlaps and gaps is discrete business +263is 4 750905/ 750979 application consequences of the on relevant legal, technical or regulatory provisions. E Y does of notthe accept responsibility for any lossor orregulatory damage youprovisions. or any third party may suffer as a result of utilising the for need for an and expert/ legal opinion interpretation, application and consequences relevant legal, technical E Y does not accept responsibility information provided.you or any third party may suffer as a result of utilising the information provided. any loss or damage
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