Blog Detail

Managing risks for SMEs

By | ربيع الثاني 25, 1443 | Nov 30, 2021

Business success is highly dependent on how potential risks are addressed. It's always good to prepare for the worst, but when it's an enterprise, one can never be too prepared for what could happen. 


In 2020, COVID-19 showed us how there are always unexpected risks and how much these risks can impact businesses, especially Small to Medium Enterprises (SMEs). But how can these risks be managed within the SME?


Risks are defined as things that affect a business' ability to operate successfully. The more severe the risks are, the harder it is for the enterprise to run. Risks can be limited through risk management, which entails identifying, understanding, and controlling risks ranging from accidents and fires to data breaches. 


So, to start the risk management process, first, the risks must be identified. What threats does your business face? The answer is inclusive of property losses, business interruption, liability claims, and employee work injury. After identifying these risks, an analysis of their impacts and probability must be carried out. 


How can these risks be addressed? 

You may avoid, reduce, or accept possible risks that your business might face. On the other hand, insurance policies can take care of all the risks to provide the necessary ground for your business to grow. 


Protecting your business is crucial for its continuity and prosperity. In many countries, employers are obliged by the law to offer insurance plans for their employees. Nevertheless, companies are advised to be insured against all risks in order to minimize financial loss.


What can be insured in an SME? 

Insurance for SMEs includes assets insurance, which covers the business location, business vehicles, damage caused by fires, fraud, theft, and business interruption, to name a few.

Also, SMEs can request liability and workers' insurance, which covers potential damages or injuries caused by the business, and insurance for workers' lives, injuries, and accidents.


For example, Tawuniya insurance offers specific policies for SMEs. These policies cover motor, property and casualty, and medical insurances. Tawuniya, the leading Saudi insurance company, provides you with the necessary help to identify, analyze and manage these risks. 

Solutions like the 360° Insurance Plan for SMEs can cover all your insurance needs, giving you the necessary stability to kickstart your success journey.


A 360° Insurance Plan for SMEs allows organizations to form their financial plans better and increases the profit margins for these enterprises by reducing allocated expenses for vehicle accidents. Other insurance plans, such as Al-Shamel coverage, provide primary benefits such as vehicle repair, damage compensation, and liabilities compensation. 


SMEs are also advised to have property and casualty insurance. As part of Tawuniya's 360° Insurance Plan, risks related to properties, liabilities, and machinery are covered across four main commercial sectors: hospitality, traders, manufacturers, and contractors. Tawuniya offers each sector unique benefits that target this particular sector. For example, the hospitality program policy covers material losses and funds and public responsibility resulting from deaths and injuries of third parties. 


Since health insurance is obligatory for employees in many countries, Tawuniya offers SMEs two insurance plans: Taj and Tawuniya Vitality. Taj provides a variety of services such as online consultations, medications, children vaccination, chronic disease management, and medical reimbursement. Tawuniya Vitality, on the other hand, focuses on helping individuals adopt a healthier and more active lifestyle. This program offers individuals the opportunity to understand their health risks in order to become healthier and increase their productivity.


Tawuniya's solutions for SMEs are all carried out through a "Quick Claim Process," which uses a sophisticated system to process claims. Through the company's connection to the relevant authorities' systems, Tawuniya can efficiently transfer data, claims, and accident reports promptly.


Insurance is thus vital for a company's survival, especially for SMEs that are still growing. An insurance policy provides you with the necessary reassurances to develop your business without any concerns. It is also crucial to choose a company that will identify and address all your business needs. Tawuniya insurance allows you to lead your business to success by providing efficient and straightforward procedures that cater to your SME's needs. 

About The Author

Mohammed Alabdullatif

Leave a comment