Protecting Your Business for Future Growth
Across the globe, economies are facing a number of complex and interconnected challenges from slowing growth to geopolitical tensions to rapidly evolving technological threats to unpredictable health pandemics. MENA (Middle East and North Africa) is also facing a 'new normal', with evolving trading conditions manifesting themselves across the region. Organisations in MENA should be proactively looking at the impact these changes will have on three significant areas of their business: human capital, operational efficiency, and financial stability.
Regional Risks for Doing Business 2019, World Economic Forum
Talent retention and Attraction
For many, the MENA region is perceived as highly attractive due to the superior living standards and career growth opportunities for both its nationals and its diverse expat communities. This offers organisations a diverse talent pool with various backgrounds, skills, and qualifications.
The ‘new normal’ in MENA sees nationalisation coupled with fit-for-purpose role suitability driving competition by employers, and having an impact on organisational human capital stability.
Now more than ever, developing sustainable talent attraction and retention strategies are the keys to business growth in the region.
The increasing interconnectivity of the world and its economies means that international supply chain concerns have the potential to be more relevant than ever to organisations operating in the MENA region. As a 'normal', extreme weather, emerging risks, technology and geopolitical challenges could affect trade, shipping and pandemics have a direct impact on the supply chain and the resilience of an organisation.
Organisations facing liquidity pressures may also feel the knock-on-effects of supply chain and stockpiling coupled with the rise of operational expenses and cost of material which means a business will need to strive for a competitive advantage.
Many countries in the region are investing in various long-term initiatives towards the diversification of their economies. This ‘new normal’ will see consumer confidence and more market-led economies drive economic growth. In order to stay competitive, organisations will need to differentiate and innovate to become more financially robust.
Firms should expect to witness a gradual and consistent pick up in trading activity over the next few years as they position themselves to grow in new markets/segments. They should be ready to take to the necessary measures to ensure growth.
Protection and Growth
In a dynamic environment, protecting your business assets is a must, and as such risk transfer has been mandated in many areas. But beyond meeting regulatory requirements, brokers, such as Marsh, can play a valuable role in the protection and growth of businesses in the region, particularly when it comes to human capital, business interruption, business resilience, and financial stability.
In order to capitalise on the value of your insurance broker to protect your business and encourage growth, you should engage them for the following:
- Knowledge and awareness — your insurance broker should have a full understanding of your industry – industry challenges that are impacting your business operations and competitive landscape. They should be able to provide advice on industry specific emerging risks, with insight on global, regional and country trends that are relevant to your business, as well as provide advice on how to mitigate and transfer those risks. This is the first line of defence in protecting your business.
- Risk transfer and insurance market expertise &mdeah; an experienced broker knows the insurance market and how to find the best, most suitable coverage at a competitive premium. They will use their knowledge, experience and leverage to define and deliver fit for purpose insurance programs for your business. The need to act is now!
- Claims support — your broker should be there for you at all times and particularly in the moments that matter. Ultimately, you protect your business from the unexpected and your broker will help you navigate through the often complex claims process. They will be able to provide invaluable advice and support throughout the whole claims process. A broker should always be working to achieve the best possible claims outcome for your organisation.
Over the coming months, we will be posting a series of Risks in Context blogs that highlight key tips to understanding, tackling and mitigating some of the most prevalent business challenges in the Middle East & North Africa region.
"Ensure you are empowered to protect and grow your business by taking steps to understand and mitigate the risks that your organisation may face today and in the future."