SME Succession Planning – A Key Element in Risk Assessment

Posted by Joachim Bartels | Nov 16, 2010 | Business Information, Industry, Newsletters | 0 |

LinkedIn Group: SME Finance in Emerging Markets discusses the importance of succession planning in risk assessment of SMEs. Tejas Parikh from Mumbai raised the question: “SME entities generally do not have proper succession planning. Does it restrict access to long term finance.”

BIIA’s managing director Joachim C Bartels commented: Succession planning plays a key role in risk assessment of companies, especially when considering Basel II criteria. It is linked to the assessment of the competence of management. The ease of which some SMEs change business models / business activities plays also a role. That brings into question the skill level and competence of the entrepreneur. Since the entrepreneur is often the sole driver of the business, yes succession planning is well on the mind of credit grantors.”

BIIA Newsletter October II – 2010 Issue

About The Author

Joachim Bartels

Joachim C Bartels is a co-founder, director, head of information resources and Editor-in-Chief of BIIA. In his capacity as Editor-in-Chief he is responsible for the selection of relevant information content concerning industry insights, trends, technological developments, standards and policies impacting BIIA members in particular and the business information industry in general.

The BIIA library is approaching 10,000 news items and best demonstrated practices. BIIA members receive regular news alerts on key developments in the industry and the regulatory environment. The BIIA readership is widespread: between 4 to 5 thousand unique visitors access BIIA.com per month.