ASSESSING THE FEASIBILITY OF POOL MECHANISM FOR MITIGATING RISKS FOR SMES IN PANDEMIC SCENARIO
DOI:
https://doi.org/10.29121/ShodhPrabandhan.v3.i1.2026.91Keywords:
Smes, Emerging Risks, Pool Mechanisms, Risk Mitigation, Post-Pandemic, Resilience, Small Business, Insurance, Risk SharingAbstract
The pandemic COVID-19 was the worst catastrophic event which mankind had in last 100 years. It well started as health crisis, but the spread of the disease led to mass lockdown making it even an economic crisis of worst kind. The worst hit were the people from the informal and Small and Medium Enterprises (SMEs). Because of poor financial standing & dependence in industry & global supply chain, they experienced substantial setbacks in terms of business and revenue, leading to unemployment and financial hardship. The standard risk mitigation techniques such as insurance failed because of definition of scope but it also raised a valid question about the financing mechanism of such mega risk, even if a suitable product is designed for. This research aims to investigate the feasibility of having a pandemic pool to arrange finance for such coverage.
The methodology used is basically qualitative in nature. A detailed literature review helped in understanding emerging risks in pandemic situation & the working of a "pool" mechanism. The research finding suggests that there is a theoretical potential however the practicality and effectiveness of implementing this concept in real-world scenarios remains a subject of concern and debate. It is evident that further evaluation, research, and exploration are necessary to address the lingering doubts and questions surrounding its feasibility in practical applications.
This research provides a way out for insurance industry to think of getting a pandemic specific solution for SMEs seeking effective strategies to mitigate risks related with pandemic & pandemic kind situation. The research work contributes valuable insights into the feasibility and potential benefits of pool mechanisms, potentially aiding the resilience and survival of SMEs in an uncertain business environment.
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Copyright (c) 2026 Manoj K Pandey, Dr. Yogesh C. Joshi (Author)
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