We believe that managing risk and protecting our reputation is one and the same thing. Risk Management, based on strong internal controls, is a key consideration and responsibility for the Board.
Exploration Risk or Resource Risk is the primary exposure for Bahari. The company aims to reduce this risk by initially operating in the area where it has the most extensive geological knowledge, – Eastern Africa.
Political Risk is mitigated by our knowledge and interest in the politics and peoples of East Africa. With a long association with the region, an operational base in Kenya and a key and highly respected Kenyan Director, the Board has a close knowledge of the regional politics and an insight into political trends that offers a major advantage in the assessment, reduction and management of Political Risk.
Financial Risk is managed by a strong system of internal controls to limit the financial exposure of the company in regard to the environment in which it operates. Moreover, day-to-day interaction with both international and national oil companies operating in the region, as well as positive and proper relationships with governments and ministries, give Bahari an unusual insight into the potential valuation and marketability of current and future assets in East Africa.
Bahari’s internal controls are designed to manage rather than eliminate the risk of failure. We accept that a balance of risk and reward is required to achieve our business objectives.
The Board therefore takes keen interest in regularly monitoring and reviewing the company’s risk exposure to ensure it maintains a balanced portfolio of opportunities within the context of the business model, prospectivity, politics and economics of the areas in which the company operates.