Dubai: 'Increasing Number of Firms in Middle East Exposed to credit risk'

Media Release

Dubai, Feb 18: An increasing number of companies across the world are facing the inevitable risks of defaulted or unpaid credit and, in the Middle East, businesses can no longer afford to sidestep the issue, especially in times of the global downturn.

This was one of the main issues highlighted by financial and credit experts from some of the leading international and regional financial and legal companies, during a first-of-its-kind, interactive seminar held in Dubai today. 

The event, organized by Millennium Insurance Brokers Company as the first in a series of niche, industry-focus seminars, examined different angles and strategies for protecting the bottom-lines of companies, with regard to managing credit risk.  The high-profile panelists presented the insurance carrier, broker, legal, and banking angles of credit risk.  

Albert Rodrigues

Albert Rodrigues, Managing Director of Millennium, said that the seminar provided important, educational insights that would help companies determine the extent of the credit risk faced by their organizations. “Credit risk is not something that impacts financial organizations exclusively but all companies are exposed to it,” he added. “With the recession, it has become all that important for companies around the world to re-look at their credit strategies in order to remain profitable.”

Rodrigues explained that objective of holding such interactive events was to learn from the collective experiences of leaders in the field, and provide a better understanding of how they have managed to mitigate risk through the combination of business processes and technologies.

Speakers at the event included Mahan Bolourchi, Middle East Head of Risk Management for Euler Hermes, the world’s leading credit insurer, along with Anil Berry, Regional Manager for Euler Hermes, and Murad Abida, Partner at Hadef Al Dhahiri Associates, one of the leading legal firms dealing with credit risk cases.

“An effective management & mitigation of credit risks will improve cash flow, allow businesses to focus on sales effort, secure business growth, secure trade finance, inculcate disciplined payment terms besides being able to sustain during the global downturn,” explained Bolourchi.

Anil Berry pointed out to the audience how companies can turn operational risks into opportunities when the risks are effectively managed. “The restructuring of credit policies at financial institutions in the Middle East shows that credit risk management policies are gaining more importance,” he said. “Many companies are increasingly recognizing the benefits of total credit insurance to safeguard themselves against such risks.”