SEDCO Holding Group says risk management crucial for family businesses

Wael Eid

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 Global Award by the Institute of Directors (IoD) for Excellence in Risk Management in 2015.
Anees Ahmad Moumina, CEO 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.”
Wael Eid, head of risk management at SEDCO Holding Group, emphasized 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.
Eid explained that family businesses can contribute to more than 70 percent of the global GDP and can employ about 79 percent of the labor force in the world.
He noted that a family business with strong risk management could achieve an average of 16.8 percent in revenue growth compared to an average of only 7.4 percent where risk management is not available.
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.