Union Savings and Loans has organized a Small and Medium Enterprise (SME) clinic for business owners on risk management.
Deputy Head of the Financial Stability Department at the Bank of Ghana (BoG), Dr Settor Amediku educated participants on the practical means identify, monitor, measure and manage business risks.
According to Dr. Amediku, in the business world, one must expect various forms of risk in order to put the necessary measures in place to effectively manage them.
He advised participants to first look at returns and consequences of business decisions before taking risks.
“Businessmen who are into export and import businesses are bound to face political risks if there is war in their country,” he said, adding that “there is also a problem of not being able to convert one’s local currency into another for business transaction. Aside this, there is also commercial or illiquidity risk, interest rate risk and documentary risk.”
The Head of Business Division at Union Savings and Loans, Dominic Donkor, also educated participants on how to tackle the risk associated with exchange rate.
He pointed out that with the fast depreciation of the cedi against major trading currencies, it will make economic sense of businessmen and to venture into the manufacturing business.
He urged Ghanaians to use raw materials produced in the country to produce commodities needed on the market.
Mr. Donkor mentioned that his outfit is willing to partner with business minded people who wanted to transform their dreams into reality.
“Union believes that with materials and equipments, business firms can do well. And it is for this reason that we are encouraging people out there with ideas to put on paper and come to us for assistance. We are here to give you the capital you need to start producing in Ghana. We are doing this because we are aware it would contribute to the stabilization of the cedi”, he said.