premio wrote:Feeling pitty for the owner of Shell Kiambu rd in a new world of social media. A photo showing a Vivo energy employee caught scamming a clients credit card data brought to an end a dealership he probably fought hard to establish. Vivo fresh from a direct hit from ERC over 4 of its stations were named in the petrokerosene scandal closed down the station. Am sure had a risk manager approached him for a review of his business he would probably have name a fire or a major theft as the biggest risks to. Where did he go wrong the experts in wazua. Employee vetting, close supervision or exactly how could he have saved his business.
@premio, I like the way your approach is from a risk mgt perspective. Risk has been evolving in tandem with the ever changing world. The dealer could not have foreseen this but a professional risk manager would. In the west, the CRO is becoming the 2nd most powerful guy in a company after the ceo.
In 2007, equity survived its worst run-on-the-bank scare through the sheer ingenuity of their ceo. A mlevi in machakos started a rumour telling people that the bank was collapsing. The news spread through word of mouth and soon the bank had to call police to control the crowd outside the local branch demanding to withdraw their cash.
Predictably, the branch ran out of cash making the rumour believable. Mwangi did two things; organised for cash to be delivered so that anyone who wants to be given their money is allowed to do so, and unleashed a PR strategy by using locals (kaos) to go and talk to people in town. By the following morning, the bank opened doors and guys realised it was a lie. The bank was there to stay.
Now replay the same scenario today with whatsapp. Within 30 minutes customers would be flooding all their branches. And yet only 20% of customer deposits are held in liquid cash.