Risks of implementation of Sberbank’s Development Strategy for 2014–2018
Updating the Strategy’s objectives, analysis of the “gaps” between the current and target state, implementation of the initiatives related to their elimination, and clarification of the tasks in the short term take place in each cycle of business planning implemented on the basis of three-year rolling planning with annual updating. When developing a business plan, Sberbank pays special attention to the analysis of the Strategy implementation and ensuring the attainment of the strategic objectives of the Group.
Though the current forecasts for Russia’s economic development and banking sector development have worsened compared to the scenario considered during the development of the Strategy, fundamental global technological trends and expectations regarding clients’ preferences did not suffer any significant changes. That means the main qualitative transformations set out in Sberbank’s Strategy remain relevant and do not need to be revised
The main factors capable of having an impact on the implementation of the Strategy are provided below.
Possible impact on Sberbank
State of the global economy and geopolitical risks
The Group’s financial result may differ from the strategic plans
Updating the forecasts for the development of the economy and banking markets as well as triggers for the transition between scenarios
Clarification of the initiatives aimed at eliminating discrepancies between the current situation and the Strategy objectives
Slowdown of key banking markets and deterioration of asset quality in the banking markets
Reduced performance of the Group’s business
Growing share of distressed assets of the Group, reduction of profitability
Review of the action plan of a number of initiatives to resolve the most urgent tasks aimed at supporting Sberbank’s activities during the crisis period (risk management, working with troubled assets, and development of Big Data)
Increased competition from nonbanking companies
Considerable flow of clients to digital channels and reduced satisfaction of traditional banking clients
Outflow of clients to other companies
Reduction of Group income
Building the ecosystem and marketplaces of Sberbank: IT-platform for aggregation of partners’ proposals and provision of our own nonfinancial services to maximize coverage of client needs
Ensuring a technology breakthrough by means of transition to digital channels and creating the best offer for the client based on advanced technologies, including personalization of product proposals on the basis of Big Data
Reduction of the time to market by implementing agile-based approaches toward change management
Despite the complicated external conditions, the main objectives set out in the Strategy are maintained. Implementation of the Strategy is supported by organized processes of strategic and business planning, project activity management, and the executives’ performance efficiency management system based on the above.
On a regular basis, the Group –and Group members evaluate the results of implementing the Development Strategy and attaining the business plan target indicators. The analysis of deviations between actual and target indicators and the forecast of the strategy and business plan fulfillment subject to newly discovered circumstances are, among other things, the basis for decisions on adjusting the strategy or business plan, making it possible to reduce the potential adverse effect from strategic and business risks.
Prospects of the Sberbank development
The range of key programs and projects implemented in accordance with the objectives of the Strategy is still considered up-to-date.
In today’s new economic conditions, Sberbank sees new opportunitiesfor its Strategy’s success by