11.0 RISKS Along with expected successes, it is clear that a broad range of risks are associated with a new and innovative approach such as an AIC, in terms of both the Center’s implementation and the external operating environment. These risks offer differing degrees of complexity and require various mitigation strategies. The stakeholder outreach conducted provides an indication of the major risks that will be encountered, as well as potential management strategies for dealing with them. However, a key role of the Center’s board and management team will be to examine, evaluate and manage risks over time. Included below is an overview of the key risks identified: Table 20 Risks to implementation and possible mitigations Center Implementation Risks Risk Finance
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Stakeholder support
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Management team and staff
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Market Demand
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Description Securing initial finance for Center implementation Securing post year 5 finance Accepting/dispersing finance in an efficient and transparent manner Budget outlined in business plan is insufficient to execute current model Investment assumptions optimistic
Continued support and buy in from government, industry and partner institutions. Identification and recruitment of appropriately skilled board members, management professionals and staff. Demand for Center services. Reputation/brand of Center.
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Potential Mitigation Ongoing discussions with numerous donors, government & investors Financial sustainability as an explicit aim of the Center post-year 5 with a clear focus on revenue generation Clear governance structure and strong implementation partners Close monitoring by trustee of financing decisions including flexibility in reallocating program budgets and assistance in further fundraising Continue to evaluate investment risks vs. potential growth and adjust model as necessary (sensitivity analysis) Partnership building to maintain and develop relationships, board seats for key stakeholders.
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High profile initiative with remuneration in line with market.
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Center continually adapts to market gaps and reallocates budgets as necessary Emphasis on customer feedback, quality control and M&E
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Source: Authors
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