Industry experts have urged small and medium-sized enterprises (SMEs) to adopt proactive risk management strategies to ensure long-term sustainability and resilience against unforeseen disruptions. The call was made during the third edition of Zenith Bank Ghana’s SME Business Empowerment Lab, held virtually on October 29, 2026, under the theme, “Building a Resilient and Disaster-Proof Business.” Samuel Yeboah, Chief Operating Officer of the Ghana Incentive-Based Risk-Sharing System for Agricultural Lending (GIRSAL), identified six primary business red flags categorized into internal and external risks. Internal vulnerabilities include poor cash flow, rising debt, inadequate record-keeping, and weak governance, while external threats involve overdependence on single suppliers or buyers, unmanaged climate risks, and declining product quality. For agricultural SMEs specifically, Mr. Yeboah highlighted that biological hazards, production cost fluctuations, and delayed payments pose significant threats. He recommended a five-step resilience plan: identifying significant risks, assessing financial impacts, developing response measures, assigning clear responsibilities, and conducting regular reviews of contingency plans. He further emphasized the necessity of diversifying business relationships to mitigate the impact of supply chain failures. Frederick Adu-Amoako, Chief Operating Officer of the Ghana National Chamber of Commerce and Industry (GNCCI), advised entrepreneurs to utilize periods of economic stability—such as the current decline in inflation and Treasury bill rates—to fortify their operations. He noted that businesses should prepare for diverse threats, including cyberattacks, regulatory challenges, and reputational damage. Mr. Adu-Amoako suggested that SMEs maintain a simple, one-page crisis management plan that outlines emergency contacts, critical operations, and staff responsibilities. He also highlighted the GNCCI’s ongoing efforts to support SMEs through advocacy, capacity building, and facilitating market access. Yvonne Dowuona, Head of Alternative Distribution and Customer Experience at Hollard Insurance Ghana, underscored the role of insurance as a vital risk mitigation tool. She urged business owners to conduct accurate asset valuations and secure comprehensive coverage for property, operations, and liabilities. Ms. Dowuona advised that insurance policies should be reviewed and renewed annually to ensure they remain aligned with the evolving risks and growth of the business. The Zenith SME Business Empowerment Lab series is designed to provide SMEs with practical insights to support business growth and compliance. Previous editions in 2026 focused on unlocking the bank’s SME ecosystem and navigating the legal and regulatory requirements for small businesses. The initiative aims to equip enterprises with the knowledge necessary to innovate, compete, and contribute to Ghana’s broader economic development.
Article source: My Joy Online | Image credit: My Joy Online