Risk managers back SEC's directives for capital market operators

The Chartered Risk Management Institute of Nigeria (CRMI) has expressed support for the Securities and Exchange Commission’s (SEC) recent directive requiring capital market operators to implement an Enterprise Risk Management (ERM) framework.

The mandate aligns with international standards set by leading organisations such as the Committee of Sponsoring Organisations of the Tradeway Commission (COSO), the International Organisation for Standardisation (ISO), and the Financial Action Task Force (FATF).

Ezekiel Oseni, president of the governing council of CRMI, praised the SEC’s initiative, calling it a crucial step towards enhancing risk-based supervision within Nigeria’s capital market.

Related News

“This move is a significant milestone,” Oseni remarked. “It aligns capital market practices with the rigorous risk management standards already established in the banking sector. It underscores our objective of promoting comprehensive ERM adoption across all sectors of the Nigerian economy for inclusive growth.”

Oseni emphasised that the implementation of an ERM framework is vital for minimising systemic risks and safeguarding stakeholders’ interests. He noted that the ERM framework would ensure better management of capital market activities, thereby adding risk-adjusted value for all stakeholders. “The adoption of ERM will ensure that the overall activities of capital market operators are better managed, leading to risk-adjusted value addition for all stakeholders,” he said.

The CRMI, the only chartered risk management institute in Nigeria, views this directive as a positive step towards enhancing risk-based supervision in the capital market, akin to practices in the banking sector. This move, according to Oseni, lends credence to CRMI’s objective of encouraging ERM adoption across all sectors of the Nigerian economy.

Hope Moses-Ashike

Hope Moses-Ashike is an Associate Editor, Banking and Finance, with more than a decade of experience reporting on Nigeria’s financial system and broader economy. She closely tracks market movements, monetary policy decisions, company disclosures, regulatory actions, economic indicators, and global developments, and interprets what they mean for businesses, investors, policymakers, and households. Her reporting helps readers understand complex issues such as inflation trends, foreign exchange market dynamics, interest rate decisions, bank performance, and investment risks. She also covers major international events and periodically travels to Washington, D.C., to report on the World Bank/IMF Spring and Annual Meetings. Her dedication to financial journalism has earned her multiple recognitions and invitations to high-level professional development programmes. She is an alumna of the International Visitors Leadership Programme (IVLP) in the United States and holds an Advanced Financial Journalism Certificate from the Press Association Training in London, UK. Her other notable achievements include completing the Lagos Business School CMC Programme, the Bloomberg Media Africa Initiative Programme, and a Master Class in Journalism at Rhodes University in South Africa.