Nigeria Business Day Reports:
March 12, 2014
Corporate business institutions have been advised to utilize the services of insurance brokers for effective risk management and business sustainability.
Ayodapo Shoderu, president, Nigerian Council of Registered Insurance Brokers (NCRIB) gave the advice when the Chairman of Geepee Group of companies, Prakash Vaswani paid a courtesy visit to the NCRIB Secretariat in Lagos.
Shoderu said the fortunes of businesses and their sustainability are determined by risk management strategies put in place by management, of which insurance is pivotal.
“The extent of risk exposures by most business concerns, especially in the changing global environment calls for proactive initiatives by business managers and this will determine their continued existence” Shoderu noted.
Risk transfer at times may not be the preferred method to mitigate risk. Its possible the risk insurance premium would to too expensive to purchase. Or perhaps the SME is in an active search for risk factors to monetize risk assumption in search of business gain. Whatever the appetite for risk assumption by an SME may be, the advice offered by Ayodapo Shoderu is quite correct. Risk management assessment is critical to business sustainability. Particularly for SME's whose modest balance sheets may not have the ability to absorb the shock of a large or a series of smaller multiple risk exposures.
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Risk, sme, sustainability, risk transfer, risk appetite, early warning