Effective change management is critical in Ghanaian banks, as seen in Stanbic’s successful migrations versus failures contributing to 2017 collapses. It aligns with BoG’s Governance Directive 2018.

Risks of Lacking Effective Change Management (10 Marks, 2 Each):

1. Employee Resistance and Low Morale: Staff may oppose new systems, leading to productivity drops and high turnover, exacerbating skill gaps post-cleanup.
2. Operational Disruptions: Poor training causes errors in transactions, risking customer loss and non-compliance with liquidity guidelines.
3. Cost Overruns and Delays: Unmanaged changes inflate budgets, straining capital under BoG’s recapitalization notices.
4. Data Integrity Issues: Inadequate processes lead to migration failures, causing financial inaccuracies and regulatory penalties.
5. Reputational Damage: System glitches erode trust, especially in a post-DDEP recovery phase with heightened scrutiny.

Measures to Minimize Risks (10 Marks, 2 Each):

1. Stakeholder Engagement: Involve employees early via town halls and feedback, building buy-in as in Access Bank’s approaches.
2. Comprehensive Training Programs: Roll out phased training with simulations to ensure competency.
3. Clear Communication Plans: Use intranets and updates to manage expectations and reduce uncertainty.
4. Project Governance Structure: Establish oversight committees for monitoring, per BoG standards.
5. Post-Implementation Support: Provide ongoing helpdesks and audits to address issues promptly.