Strategic Risks

Decisions regarding our investments and resource allocation are vital to the success of our business strategy.

Risk Description of risk Control Responsibility Change
(2015 on 2014)
Divestment
  • Difficult divestment environment.
  • Inability to successfully divest assets at an acceptable price and/or time.
  • Management restructuring designed to provide greater focus on IRR when making investment decisions.
  • Monitor and tailor projects to fit macro environment.
  • Facilitate buyer access /relationship with host Government.
  • Maximise transparency with equity buyers.
  • Contingency planning and preparedness to change the course of action as situations change.
Director Portfolio and Strategy
Investment decisions
  • The Group may not be able to identify appropriate expansion opportunities or be able to manage such expansion effectively.
  • Investments are not dictated by production or reserves growth targets; instead each investment will be assessed on an IRR and materiality basis.
  • Focus on growing a revenue generating business to fund exploration activities and minimise the overall cost of capital.
  • Allocate capital to highest return opportunities following rigorous risk reward analysis.
  • Risk assessment and due diligence process is undertaken on all potential new country entries.
  • Ophir endeavours to transact at the most appropriate time to create value for shareholders.
Director Africa Global New Ventures/ Director Asia