What does a case study question look like?
Tshepo Batane, Vennlisk’s Chief Financial Officer, stops by your office and gives you a document:
“Following Board approval, Vennlisk has now completed the acquisition of a call centre operator in Ostland. This is our first call centre outside Westland and will allow us to offer lower-cost services to some clients. However, the Board is increasingly concerned about the risks of operating in Ostland, particularly given recent cyber-attacks on call centres in the region. I need you to prepare a report that covers two matters:
Firstly, recommend, with reasons, the approach that Vennlisk should now take to manage the political and operational risks in Ostland following the acquisition. [sub-task (a) = 50%]
Secondly, evaluate the arguments for treating Vennlisk’s cybersecurity as a strategic issue that should be overseen directly by the Board.” [sub-task (b) = 50%]
Reference material: Ostland expansion and risk context
Vennlisk has acquired a call centre operator in Ostland, a country where pay rates are much lower than in Westland.
The acquisition responds to competition from call centres in low-cost countries. The Ostland centre will handle calls for some of Vennlisk’s shared inbound clients, using high-speed links to Vennlisk’s cloud-based servers in Westland.
Recent reports suggest that call centres in the region have been hit by cyber-attacks aimed at stealing customer data and at disrupting telephone and internet links.
There are also concerns about the political and regulatory environment in Ostland. The government has proposed a law that would require customer data handled in Ostland to be stored on servers inside the country, and would give government agencies the right to inspect that data.
Corporate governance guidance highlights that cybersecurity and the protection of personal data are becoming more critical for businesses that hold large amounts of customer information.