Page 102 - Gondwana Collection Namibia Value Creation Report 2021

HOW WE GOVERN GONDWANA
Our top risks
Risk
Financial risk
Cash flow and financial shortages
Inability to grow the business
Seasonal risk
Market and occupancy risk
Airlines
Recessions
Visa and other entry requirements
Litigation/Insurance Risk
Business interruption insurance claim
Innovation risk
Inability to respond to a changing
operating environment
98 VALUE CREATION REPORT 2021
low medium high Our top risks low medium high
Cause Mitigation Risk Cause Mitigation
Compliance and legislative risk
This remains the top risk with the business running in an uncertain ○ Cash flow planning and stringent cost-cutting initiatives Conservancy agreements Multiple differing legislative requirements regulating operations in a ○ Gondwana controls the leasehold properties
operating environment. The impact of this risk ranged from affecting ○ Additional sources of funding secured should the business require this single conservancy area. ○ Gondwana will continue to generate future income on these properties
Gondwana’s competitive ability and the ability to grow the business to ○ The value of the properties is not declining since Gondwana maintains the
bring the continued existence of Gondwana into question. ○ Aggressive marketing campaigns to improve occupancy levels buildings regularly to keep up with industry standards
○ The conservancies will continue reaping benefits from these operations
Our business growth and competitiveness directly depend on capital to ○ Cash flow planning and stringent cost-cutting initiatives ○ The Joint Venture agreements also state that Gondwana will occupy on a
realise business opportunities. ○ Aggressive marketing campaigns to improve occupancy levels renewal basis
○ After IFRS 16 changes, we obtained a new audit opinion to determine the
Seasonal revenue generation concentrated between July and November. ○ Through sales and marketing, Gondwana should diversify into different markets effect on the balance sheet
with different travelling seasons throughout the year ○ Legal agreements
○ Proper budgeting and cash flow management for low season
Regulatory risk – outbreak of disease Covid-19 caused travel restrictions and border closures, preventing our ○ Transparent information on Covid-19 cases in Namibia (the risk in travelling
globally or locally resulting in regulatory largest market base from accessing our products. Tourists are hesitant the country) circulated to all booking agencies and direct bookings
intervention to make bookings over fears of being quarantined in a foreign country if ○ Our business interruption insurance covered losses due to Covid-19
○ High dependence on the dependability and frequency of direct flights ○ Market diversification and new markets will lead to more airport arrivals they contract the virus. ○ Detailed records of cancellations and proof of pre-payments
○ Capacity constraints ○ Ongoing monitoring Environmental risk
○ Limited access for growth in tourism ○ Training and awareness for officials and point of entry at airports
○ Investigate other options/airlines Drought and natural disasters Drought or fires on our properties could create a lack of grazing land ○ Park management plan
and increase mortality in wildlife or livestock. ○ Hunting licences to control wildlife numbers
○ Covid-19’s impact on economies ○ Internal cost management and saving measures have been implemented. ○ Securing livestock and wildlife for own butchery use
○ International travellers’ spending impacted
○ Uncertainty over the cost of post-lockdown travelling for international Biodiversity loss Loss or drastic reduction of fauna and flora in our natural environment ○ Working with conservancy management committees, communities,
travellers due to human footprint/settlement expansion resulting in human- NGO’s and governmental ministries to educate people on the dangers of
wildlife conflict and deforestation. biodiversity loss.
○ Working with the relevant authorities to implement proper and sustainable
○ The Namibian visa application process is too cumbersome for some ○ Raise awareness with policymakers and relevant ministries Overfishing in our river systems village and town planning that incorporates wildlife corridors and natural
international markets ○ Training and awareness for officials and point of entry at airports wilderness areas.
○ Few countries have visa-free access to Namibia ○ Educating communities on the value of fish protection areas
○ Uncertainty of post-Covid-19 border entry protocols
○ Supporting fish guard projects
Mining (using more than is sustainable) In the drier parts of the country like the Namib and Kunene regions, the ○ Continue to use water stringently and efficiently in our operations
○ A protracted legal battle will demand expensive legal fees and ○ We have engaged a top legal team to defend our case of underground water systems unsustainable use of underground water resources could lead to its depletion. ○ Educate and strongly influence others in the area to do the same
management attention
○ The claim payout may not meet our expectations
IT governance
We have sound IT governance structures to mitigate IT risks and ensure our
Our industry is evolving due to technology and changing customer ○ We have embarked on an innovation journey to improve our online booking
expectations. We need to innovate in response to changing market and payment capabilities technology investments generate business value.
conditions. ○ We have policies and systems in place to manage our data and cybersecurity
risks
○ Our new department, The Lab, helps us understand and respond to changing We have IT policies to establish minimum requirements to satisfy the Board and auditors. Our IT risks are extensively profiled and mitigated. We have strong definitions of data protection, security and
customer expectations together with our new CRM System, Hubspot redundancy. Our IT Committee includes compliance officers, some of whom are senior IT Team members. We are developing the necessary IT governance structure to prepare for a possible listing. In
2020, we appointed a Chief Information Officer to formalise our IT management and governance.
We measure our IT management’s effectiveness by monitoring server downtime, website availability, download speeds, access points and infrastructure. IT risks are mitigated by limiting access to our
systems in a controlled manner. We have the infrastructure to manage our data. We conduct regular IT audits using external providers to confirm the efficacy of our IT risk management process.
The Board is kept informed of any IT challenges or disruptions and is satisfied that we take the necessary precautions to secure our data and maintain systems or restore them should they go down. We
maintain a working document to ensure we look at all aspects of every department at risk.
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