SME risk management: How a forward-thinking Asian logistics company stays ahead

In Asia, small and medium sized enterprises (SMEs) are facing significant headwinds due to the confluence of risks. 

Not only are signs of an economic downturn on the horizon, but the combined impact of geopolitical, climate change, people and technology risks also put the readiness and risk management capabilities of Asia SMEs to the test.

In this challenging and constantly evolving business environment, successful businesses need to identify, anticipate, and quantify the risks they are facing. It is also critical to implement robust business continuity measures to safeguard against disruption and supply chain shocks, and secure appropriate insurance coverage to protect their assets and investments. 

SME Risk Management success story: iHub Solutions 

Highly dependent on global supply chains, the logistics sector is one of the industries that is most impacted by volatility and the ripple effects of risk events worldwide. 

Marsh Asia spoke to Mr. Koh San Joo, CEO and founder of iHub Solutions — an established regional logistics company with operations across Asia to hear first-hand how he has built a successful business. With a forward-thinking stance on risk management, technology adoption, sustainability, and workforce strategies, Mr. Koh has managed rising costs, helped to upkeep and enhance its business competitiveness, and recovered quickly from crises and black swan events such as fire damage, supply chain disruptions, and the Covid-19 pandemic.

5 key risk management takeaways for Asia SMEs

• Stay agile and build business resiliency as part of business continuity planning (BCP)  and crisis management  to safeguard against risks such as extreme weather, supply chain disruption , pandemics, and cyberattacks.
• Secure relevant and ample insurance protection for your business and employees in the event of crisis or black swan events.
• Understand the importance of helping employees adapt to technology and artificial intelligence (AI) via redesigning work processes and upskilling for talent retention and attraction.
• Embed environment, social, and governance (ESG) best practices into your business strategy and enterprise risk management (ERM).
• Engage an insurance broker that understands your needs and interests first, and can provide dedicated claims support to help your business recover quickly following a loss event.