The struggle from Small to Medium Business – the best way forward confirmed?
As LMI continues to grow rapidly and we move internationally, we are confronting all the issues of other companies who struggle from youthful enthusiasm through sophisticated confusion through to mature efficiency and then of course you have to reinvent your business and start the process again.
One of the great benefits I have is that working with so many businesses after a major loss or better still, assisting with their risk management and business continuity planning before any loss, I can look at the different ways that other businesses overcome the hurdles of moving from a small enterprise to a medium or large one.
My own observations have been affirmed by the Federation of European Risk Management Associations (“FERMA”). Research conducted by this organisation has found that mature and best practice risk management improves corporate performance.
The survey also found that companies with the most advanced risk management policies reported the strongest level of growth for the past five years, as measured in terms of earnings before interest, taxes, depreciation and amortisation.
The President of FERMA, Jorge Luzzi, was reported in Commercial Risk Europe yesterday as saying “We have long believed that good risk management contributes to sustainable corporate growth. Now we have clear evidence that there is a correlation. This is a particularly important finding in light of the pressures on corporate results during the last five years.”
I found it quite reassuring to have support for this strategy which I use to develop my own business and in developing products like LMI ContinuityCoach which are designed to assist brokers and business owners develop their own risk management and business continuity plans.
Of course one of the most powerful risk management measures is to transfer risk through a comprehensive insurance program and that is where an insurance broker is so important.