Local manufacturers advised to manage their risk
September 2—Ugandan businesses that do not plan for future mishaps may end up paying a heavy price .
“From supply chain to reputational risks, internal and external fraud, cybercrime and trade credit risks to management of millennial employees, today’s manufacturer has to set up a robust Risk Management Program to survive these complex hurdles amidst a very competitive environment,” Maurice Amogola, the Chief Executive Officer of Minet Uganda said on Friday.
He was speaking during a meeting for local businesses under the theme ‘Building Resilient Businesses; Understanding how the smallest and most negligible risks can be the biggest disaster. It was organized by Minet and aimed at showing manufacturers how to prepare for risks and handle them to avoid financial losses.
Uganda Chamber of Minerals and Petroleum president, Elly Karuhanga, said manufacturers and business people need to always consult financial risk advisers to effectively identify and manage emerging risks in order to maximize returns.
A 2019 survey conducted by insurer, Aon, listed economic slowdown (slow recovery), damage to reputation or brand, accelerated rates of change in market factors and business interruption among the top five risks facing businesses.
Mustapha B. Mugisa from Summit Consulting, who gave the keynote speech, said manufacturers should always seek the services of a professional risk advisor like Minet, to not only minimize costs but also to guarantee value for money.
He said, “Professional risk advisors are important because they ensure the most relevant risks to your kind of business are covered from the get-go. Strategic decisions like procurement of plant equipment, operational processes, the kind of people to hire, supply chain efficiencies and data handling all require professional advice, to minimize risk.”
Participants were largely drawn from the Middle Tier I and II, manufacturing groups, under the Uganda Manufacturers Association (UMA). A few large scale manufactures also attended.
Ronald Ssezibwa, the Managing Director, Web Engineering Services Limited said as local manufacturers, they lack proper information on risk management and how to go about it hence most of them leave their businesses at risk with no proper strategy at hand.
“Like my business, we are professional welders. There are a lot of risks including fires, workers’ safety, theft among others. However as a business, you never anticipate them until they happen, that is why having a third-party to come in and look at all risks and how you can manage them is very important,” he said.
Alex Onen, Manager Industry Division, Minet Uganda said,“Manufacturers often prioritize financing, taxation and supply chain issues. Today we demonstrated to them that essentially, effective risk management would help them address all the challenges they often grapple with in one go.”