Asharqia Chamber is organizing a workshop on the risks and challenges facing the family business and the proposed management strategies
Asharqia Chamber, in cooperation with KPMG Al-Fawzan and Partners, organized a workshop on the risks and challenges facing the family business and the proposed management strategies on Sunday, September 27, 2020, presented by the head of customer services and consulting services in the eastern region of KPMG, Professor Youssef Khalil, who pointed out that there are several phenomena that prevail in most family businesses, such as the absence of a structure, even if it is flat, the establishment of informal communication relationships, reliance on central management methods, leadership style based on family situation, and other phenomena related to poor planning and rehabilitation For future generations, as well as poor knowledge management, stressing that such phenomena lead to the occurrence of risks, that is, the inability of family companies to achieve their business goals or lack of the necessary financing for business in a timely manner, weak leadership or lack of family unity, calling on family companies to review And review the risks you face from time to time in order to keep pace with the ever-changing business and surrounding conditions.
The head of customer services at KPMG in the Eastern Province went on to explain a number of risks facing family businesses in several areas such as business management, investment, and financial management in addition to risks related to the family of the royal family, explaining that the exit from these risks is according to mechanisms Among them is governance, which means adopting decentralization and flexibility in decision-making and empowering business management by applying the principle of responsibility and accountability, and focusing on building specific frameworks to enable speed of movement and adaptation to changes, and this requires involving the next generation in managing the crisis because of the understanding of the modern language of the new generations. Knowledge of modern technologies, unconventional business models, and market opportunities.
As part of the risk exit plans, he called for reviewing the strategy from time to time, restructuring in line with new market trends, ensuring the flexibility needed to deal with rapid changes, adhering to high-profit activities, and reviewing stalled projects and initiatives or those that do not match the company's core competencies. Or not in harmony with its updated strategy, diversifying sources of income by entering into converging sectors of work, diversifying products and services provided, and considering entering new markets in proportion to the company's basic capabilities and strengths, stressing the need to find and develop an integrated perspective that includes analysis of strengths and weaknesses And opportunities with risk analysis.
Khalil touched on human capital management and its role in overcoming risks, saying: Managing employees with a high spirit of leadership, ensuring transparency in communicating with them, motivating them to alleviate their concerns, raising their productivity, sharing the goals and objectives of the company, and encouraging them to play an effective role in achieving them. And other factors that encourage the multiple and varied employees, besides creating a great affiliation with the company, support the company's confrontation of risks, and he concluded by saying that family business owners should seek to reach an agreement on identifying challenges and ways to deal with them, by planning risk management strategies and monitoring their implementation.