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Aon Romania presents business perspectives for 2025: Risk management systems as a solution for stability in an uncertain environment
Aon Romania, one of the global leaders in corporate insurance brokerage, organized the event “Trade Credit - Perspectives for 2025” on Thursday, October 24, aiming to discuss current challenges in the Romanian business environment and specific tools for risk mitigation. Difficulties in debt recovery, economic uncertainty, and rising operational costs are among the most pressing challenges Romanian companies face.
At the event, targeted at decision-makers from major Romanian companies, experts like Eugen Anicescu - CEO of Aon Romania, Gary Lorimer - Global Growth Leader of Aon, and Iancu Guda - Producer of IQ Financial, Observer & Owner of MiM Money in Movement, discussed the local and global economic context. The event also featured a panel discussion with participants such as Mihai Moraru - Founder & Partner of Agro-EST Muntenia, Carmela Negulescu - Country Manager of Alfasigma Romania and Addenda Pharmaceuticals, Petronela Prentu - CFO of Intertranscom Impex SRL, and Elena Nuta - Trade Credit Practice Leader Aon Romania. The discussions addressed Romanian companies' current state and their challenges.
“Locally, Romania’s economic context is complex. On one hand, we are experiencing the highest salary growth in the European Union at 30%, significantly boosting Romania’s purchasing power. On the other hand, the economy is slowing down, putting pressure on companies across various sectors. This is also reflected in the increase of the trade deficit to alarming levels, over 10% of the country's GDP, driven by high imports which account for 70% of internal consumption growth,” explained Iancu Guda, Producer of IQ Financial, Observer & Owner of MiM Money in Movement, on the Romanian economic situation.
Various challenges affect company operations
The economic context has driven up operational costs, pressuring company profit margins. Rising energy and raw material costs impact various sectors, making implementing specific risk mitigation measures essential. In agriculture, economic instability and climate risks reduce profitability and pressure farmers, distributors, and financiers alike.
“Agricultural companies are going through a tough period marked by various challenges. First, climate change has significantly affected production, increasing the need for government subsidies. In the last five years, four have been characterized by drought, limiting farmers’ ability to forecast and maintain the financial resources necessary for investment. Second, both agricultural input distributors and specialized financiers assume greater risks than banks, granting supplier credit for up to 12 months. These companies require specialized solutions, such as trade credit insurance, to mitigate risks and avoid uncollected debts,” said Mihai Moraru, Founder & Partner of Agro-EST Muntenia.
Furthermore, companies are facing delays in collecting receivables, which creates cash flow pressures. This situation is caused by long payment cycles, impacting current operations management and cost coverage capacity.
"In the pharmaceutical field, there is a close relationship between manufacturers, distributors, and pharmacies. When there are delays in payment from the Health Insurance House for reimbursed prescriptions, a domino effect is created: pharmacies are unable to pay suppliers, and distributors face difficulties in making payments to manufacturers, which can sometimes lead to significant market blockages. In this context, trade credit insurance becomes an essential tool, providing stability against non-payment risks," says Carmela Negulescu, Country Manager of Alfasigma Romania and Addenda Pharmaceuticals.
This trend is also observed in the industrial sector: “Regarding short-term assets, there is an increase in uncollected receivables. Compared to previous years, we see growing interest in trade credit as the receivables collection rate deteriorates, correlated with the uncertainty in the construction sector,” explained Petronela Prentu, CFO of Intertranscom Impex SRL.
Economic uncertainty and the difficulty of forecasting risks remain a constant trend that companies face globally, necessitating the use of specific solutions and tools.
“From the pandemic period to the ongoing conflict nearby and the variable economic context, the business environment has been exposed to diverse risks. Uncertainty is the only certainty, and forecasting the business context has become increasingly difficult. Therefore, the only solution is to use specific tools that can contribute to risk mitigation,” stated Eugen Anicescu, CEO of Aon Romania.
Opportunities and risk management solutions
Despite challenges, there is a noticeable increase in the global appetite for risk, with a two-percentage-point rise in the third quarter of 2024 compared to the previous year. Furthermore, the global credit limit approval rate reached 78%, indicating insurers’ support for global trade.
"We place a special emphasis on our relationship with our clients. This involves analyzing our clients' needs through the lens of our sector expertise and understanding risk assessment, ensuring that we fully comprehend our clients' objectives so we can provide them with optimal solutions. For this purpose, we use a 360-degree evaluation of each project, which allows for a comprehensive understanding of risks and opportunities. Whether clients are involved in factoring, supply chain financing, or political risk protection, our company offers solutions that cover the full range of their operations," explains Gary Lorimer, Global Growth Leader at Aon.
The event emphasized that understanding the business context, specific decision optimization methods, and risk mitigation tools can contribute to performance growth and stability for companies, even in uncertain conditions. Through this framework, Aon aims to offer solutions and strategies to help companies navigate the significant challenges they face, promoting an exchange of ideas and best practices among participants. Discussions focused on identifying proactive measures that can be implemented to manage risks and optimize resources in difficult economic conditions.
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About Aon
Aon is a global consulting company specializing in risk management, pensions, and health. With data-driven expertise delivered by experts, Aon helps clients reduce volatility and maximize performance in a dynamic global economy. Aon Romania, part of Aon plc, is a leader in insurance brokerage and risk management consulting, providing high-quality and innovative services for industrial and commercial companies, public authorities, interest groups, NGOs, and individuals.