Risk management
Collaboration —
key in high-risk
environments
I
n 2011, when the Arab Spring erupted in Egypt, business
suffered — with the effect being felt all around the world,
according to a report by Grant Thornton. But some, like
multinational food giant Danone, continued, strangely, to thrive
despite the political and social turmoil.
How did they buck the trend? Danone’s success in difficult
circumstances was due to strong relationships with the
surrounding communities who were their milk suppliers.
They survived a revolution because they had invested in good
relationships and sophisticated business arrangements within
the local community.
These kinds of solid relationships are increasingly important
in a world of rapid and unpredictable change. “It is becoming
increasingly difficult for companies to mitigate risk and unlock
32 AFRICAN MINING MAY - JUNE 2019
In a business landscape of
increasing complexity, uncertainty,
and sociopolitical conflict,
well-managed collaboration is
the key to unlocking growth and
allowing organisations to thrive
in difficult environments, writes
Professor Brian Ganson.
opportunities in challenging environments and unfortunately,
complex environments are becoming more universal.
Even when companies are trying to do the right thing,
political, economic, and social conflict — related or seemingly
unrelated to the company’s operations — can have devastating
consequences for business. Consequences include costly disputes
with communities and unions, reputational damage, and labour
unrest, which can result in major infrastructure projects being
slowed or stopped.
Well-managed collaboration and conflict resolution are essential
to mitigate these risks, not only in times of crisis, but as an
integral part of meeting the company’s operational, financial, legal,
reputational, and social goals. This also holds the key to unlocking
opportunities in difficult places.
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