Mr Jeff Gable, the Lead Economist for Absa Group in Africa, has emphasised the critical need for sovereign states to adopt proactive measures in facing the formidable headwinds posed by rising inflation, surging interest rates, and geopolitical uncertainties.
Drawing attention to simmering political tensions in Francophone West Africa, he issued a stark warning about the potential repercussions on the broader African continent if left unchecked.
Mr Gable was speaking when
Absa Bank's Corporate and Investment Banking division organised a gathering of key clients, including Chief Executives and Finance Officers of leading companies in Ghana, to discuss the issue of risk management and its pivotal role in turbulent times.
He said in an age defined by global unpredictability, businesses must adapt their strategies to ensure lasting success while mitigating potential risks.
"For financial institutions like Absa, mastering the craft of risk management isn't just a skill; it's a formidable competitive advantage that defines its position as a trusted partner in today's complex business environment," he said.
He said "In a world fraught with uncertainty, Absa remains an organisation of stability. The bank's dedication ensures that its clients can operate their businesses with confidence, fortified by the strength of strategic risk management. In a partnership built on trust and innovation, Absa empowers its clients to face the future with certainty and security."
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Ms Vuyo Teleki, Head of Corporate Solutions at Absa Group, echoed the sentiments of the audience by passionately advocating a diversified risk management approach.
She emphasised the importance of a balanced portfolio of risk mitigation tools to shield businesses from earnings volatility.
Some experts who participated in the event highlighted the virtues of various risk management products, including foreign exchange options and swaps.
Their argument revolved around the indispensable role of these financial instruments in preserving financial diversity in the face of looming currency depreciation risks.
However, the true testament to the power of risk management came from the clients themselves.
Their stories of resilience in the face of adversity served as compelling anecdotes, reaffirming the critical role played by these financial safeguards.
Their accounts offered a glimpse into the strength of businesses that had prudently embraced risk management products, ensuring their survival and growth even during the most unpredictable economic cycles.
