Business & Money | Wednesday 15 June, 2016 9:29 am |

Corporate governance and risk management has steadily become the foundation for family businesses, as its application leads to untold success and competence. SEDCO Holding Group was one of the first family businesses to realize its importance, and was able to implement the role of corporate governance and risk management for the progress of all local and global commercial activities. SEDCO Holding Group’s success gained recognition when it achieved the much-coveted Global Award in 2015.

Anees Ahmad Moumina, Chief Executive Officer of SEDCO Holding Group, commented: “SEDCO Holding Group has earned a lot in many areas from a local to global perspective with the investments in risk management and other various activities playing a major role in achieving this. Our experience in the field of corporate governance and risk management makes us the leader in the Gulf region and the Middle East”. 

Meanwhile, Dr. Wael Eid, Head of Risk Management at SEDCO Holding Group, stressed on the importance of the institutional risk in family businesses in the Gulf region. He cited the work of a group of experts to identify the importance of family businesses during his participation in the Risk Leaders Conference, which was recently held in Dubai.

Dr. Eid explained that family businesses can contribute to more than 70% of the global GDP and can employ about 79% of the labor force in the world. He noted that a family business with strong risk management could achieve an average of 16.8% in revenue growth compared to an average of only 7.4% where risk management is not available. 

Dr. Eid also said that there is a possibility for family businesses to make greater annual returns if they apply risk management 

He predicted the challenges that family businesses could face, but praised the role it could play in the industry, highlighting SEDCO Holding Group’s prominent role in applying rigorous risk management principles that puts it on the global scene..

 

 

According to a study done by Ernst and Young, operating profits of companies that follow strong risk management practices are three times higher than those who do not.