Coronation Insurance: SMEs Urged To Develop Risks Management Framework
The Managing Partner of Crown $ Lords, (Chartered Accountants ), Mr Omoyayo Gbede has urged the SMEs to develop risks management framework, without which, he said will be difficult for companies.
Gbede made the call at a webinar organised by Coronation Insurance Plc in partnership with Access Bank Plc, with the theme: “Managing Business Risks at a Time of Uncertainty”.
Speaking on the topic , “Inflation in Nigeria and possible ways to reduce impacts on your Business ‘, he noted that the SMEs were the most affected by the hard times recorded in 2020 because of their low financial capacity.
He said; “2020 is a year that the like may not come in a long time. It has brought us to the reality that we must always be on our feet. We didn’t plan for inflation and increase in foreign exchange and interest rates”. “We didn’t plan for a lot of things and yet we are in it, and who are the most impacted? They are the SMEs, because of their lower financial capacity, and their reliance on keyman who may be the owner of the business.” He added that we are in a New normal , and without effective risks management, it will be difficult for any company.
Also the Group Managing Director, Continental Reinsurance Plc, Dr Femi Oyetunji, who spoke on ‘How to manage your business risks, identified top SMES business risks as, Keyman.
He listed the risks to include: Currency Risks; Regulatory; Property Damage; Business Interruption; Reputational Risk; Supply Chain; Cyber Risks and Fraud.
He highlighted need for documentation of systems and processes; succession planning and keyman insurance as how to manage Keyman risk.
For currency risk, he called for diversification, substitution; local content; hedging; linked securities; zero tolerance to non-compliance.
On reputation risk, he canvassed the need for business ethics – core value; good governance, quality control; professional indemnity insurance and directors/officers liability insurance
For cyber risks he urged SMES to educate their staff; have good policies and procedure; use firewall; enact business continuity plan and cyber insurance