While the vibrant MSME sector of India forms a significant part of the national economy, the nature of these businesses often leaves them vulnerable to a variety of risks.
The IRM , India Affiliate, the world’s leading professional body for enterprise risk management qualifications, recently organized its second webinar under the MSME knowledge partnership series, a collaboration with the National Institute of Micro, Small and Medium Enterprises (NI-MSME, Ministry of MSME, Government of India).
The panel discussion, Succession Planning Risk Management, included key industry subject matter experts: Sandeep Bhatnagar, Director – M & BD, NI-MSME, Shailesh Haribhakti, Chairman, Shailesh Haribhakti & Associates, V. Swaminathan, Head of Corporate Audit & Assurance, Godrej Industries Limited and Jitender Arora, CFIRM, MD & Head – Business Risk Management, State Steel.
The webinar, highlighted the importance of developing a robust succession plan as an essential risk management strategy for the long-term survival of MSMEs, was attended by participants from several countries, including: India, Ireland, UK and Canada, among others.
Startups & MSMEs are the engines of exponential growth, manifesting the power of innovation. India’s MSMEs, employing more than 45 percent of the country’s workforce, are working relentlessly to make an impression in the global market, with risk-taking being a part of their entrepreneurial DNA. However, the disconnect between passion and reality, the challenge in managing black swan and grey rhino events, and the lack of a structured framework to pass on the business legacy to the next generation are placing these MSMEs at risk of survival. Our partnership with NI-MSME aims to nurture these businesses into risk-ready enterprises over the next decade. There’s never been a better time to get qualified in enterprise risk management. We invite SME business owners to take up IRM’s qualifications and protect their organisation.– Hersh Shah, CEO, IRM India Affiliate
Succession planning is one of the most critical factors for MSMEs especially in the current climate, where the business environment has undergone a transformation, and there is a lot of unpredictability. The lack of skilled manpower is a major constraint for MSMEs, and when key employees retire from an organisation or leave for other opportunities, the inability to replace them with an adequately experienced successor can directly impact the wellbeing of the business. When succession is planned correctly and with foresight, it enables stability for the organisation as well as the board, staff, and managers. – Sandeep Bhatnagar, Director – M & BD, National Institute for Micro, Small and Medium Enterprises