Leveraging Risk:

1
Leveraging Risk

• Tools and Techniques

Roslyn Docktor Vice President McConnell
International
2
Agenda

• MI and Risk
• Global Environment
• Identifying and Measuring Risk
• Leveraging Global Risk
• Three Case Studies
• Lessons Learned

3
MI and Risk

• McConnell International (MI)
• Ethical work of the highest quality at the
  intersection of business, technology and policy
• 130 Country Global Network
• Global Reports

4
MI and Risk
Environment

• Identify, Measure, and Leverage Risk -
• Internal (control)
• External (influence)
• Global (leverage)

Network
My Business
Your Biz Operation
5
Global Risk Environment

• Bureaucrats are a bigger threat to business than
  terrorists
• - Merli Baroudi, Risk Services Group, the
  Economist Intelligence Unit

6
Global Risk

• Identification and Measurement Tool
• E-Readiness Assessments
• E-Readiness -
• The capacity to participate in and benefit from
  the global digital economy
• Source of economic growth in the Networked world
• Fundamental building block for success

7
Global Risk

• E-Readiness Assessment shed light on solutions
• Where is the risk?
• How does the risk affect me?
• Who is profiting from risk?
• What are my options?
• Which action would be a better ROI?

8
Global E-Readiness

• Attributes
• Connectivity
• Leadership
• Information Security
• Human Capital
• Business Climate

53 Countries
9
E-Biz Climate

• Traditional Risk 7 out of 10 of the EIU
• Transparency and Predictability
• Financial and Legal
• Trade Policies, Import/Export
• Competitive Practices e.g., Tax, FDI
• E-Adoption

10
Connectivity

• There are only two players those connected to
  the Net and those who are not.
• - Jose Maria Figueres, President of Costa Rica
  (former)

11
Connectivity

• Access to Information, Goods and Services
• Available, Affordable, and Reliable
• Quality and Selection
• Delivery Systems
• Electrical Supply

12
Information Security

• Critical Assurance
• Legal Framework
• Enforcement
• System Security
• Response Centers

13
Human Capital

• People Power
• Workforce Skills and Efficiencies
• Education System
• Culture of Creativity, Independent Thinking, and
  Sharing
• Attraction and Retention
• Training Opportunities

14
E-Leadership

• Nothing is illegal if a hundred businessmen
  decide to do it.
• Ambassador Andrew Young

15
E-Leadership

• Picking Partners and Places
• Vision and Priority
• Coherent Strategy, Planning and Coordination
• Demonstrated Success
• Reputation and Brand

16
Global E-Readiness
China e-com evolving slowly 34 mil Net users
but legal and policy risks to investment
Romania regional late bloomer making tech,
legal, and skilled labor strides quickly
?
Brazil capitalize on eGov dev. monitor lagging
but emphasized human capital
South Africa early entrants will reap SNO
broadband plan adv. -partners a must
17
Global E-Readiness
Ready? Net. Go! Partnerships Leading the Global
Economy
?

• Opportunities and risks abound
• Success derived from innovative partnering
• Download Reports- www. mcconnellinternational.com/
  ereadiness

Ready? Net. Go! Partnerships Leading the Global
Economy
18
Leveraging Risk
Environment

• Mitigating Risk
• Be bold
• Be calculating
• Be backed

Network
My Business
Your Biz Operation
19
Leveraging Risk

• Partnering
• Governments
• Common Causes
• Contractual Relationships
• Trusted Networks

20
Public-Private Partnerships

• It is clear that the many advantages of the PPP
  approach will see an expansion of its use.
• - Trefor Williams, Moving to Public-Private
  Partnerships

21
Public-Private Partnerships
New models for working with governments

• DB
• BOT
• BTO
• BOO

• DBFO
• BLTM
• LROT
• BOOT

22
Common Causes

• Commonly Private-Private, growing
  Public-Private-Non-Profit elements (Consortiums,
  Task Forces, Alliances and Associations)
• G8 Dot Force
• UN ICT Task Force
• WSIS
• IACCM
• GDBe

23
Contractual Relations

• Private-Private
• Distributors
• Resellers
• Franchises
• Sub-contractors
• Local Partners

24
Trusted Network

• All Sectors All Stakeholders
• Networking
• Alumnae
• Past Clients
• Previous Partners
• Former Employees
• Global Neighbors

25
Case Studies

• Big Britches New Market Entry
• Niche Knickknacks Increase Sales
• Gadgets Galore Test Market New Product

26
Big Britches

• GOAL Sell Cutting Edge New Britches
• Mitigated New-Market Entry Risk
• Measured Market Readiness through trusted network
• Selected Market based on leadership and climate
  for a quick win
• Developed brand management based on network
  identified local needs
• Secured funding for product launch

27
Niche Knickknacks

• GOAL Sell More in Existing Market
• Mitigated Resource Allocation Concerns
• Measured market readiness
• Selected most needed niche knickknacks for that
  market
• Identified and partnered with complimentary niche
  knickknack provider
• Sold and launched strategy

28
Gadgets Galore

• GOAL Test Market New Gadget Globally
• Mitigated Import and Technology Risks
• Measured potential risk
• Identified and selected local champions and
  testing channels
• Structured incentive program for network
• Secured thousands of participants in market test

29
Lessons Learned

• Spin Doctor
• Invest in building internal consensus and
  senior-level support
• Invest in international personnel, local
  partners, building networks and sell their
  perspective
• Sell risk as a leverage to competitive advantages

30
Leveraging Risk

• Tools and Techniques

Roslyn Docktor Vice President Docktor_at_McConnellInt
ernational.com