The Chartered Risk Management Institute (CRMI), in a bid to bolster Investor confidence in Nigeria’s capital markets, has initiated a collaboration with the Securities and Exchange Commission (SEC).
Ezekiel Oseni, president of the Institute announced this during a courtesy visit to Emomotimi Agama, the director general of SEC on Thursday in Abuja.
He underscored the pivotal role of effective risk management in instilling confidence among investors, both domestic and international, as robust risk management practices go beyond mere compliance to serving as a catalyst for sound corporate governance and sustainable business growth.
According to him, their collaboration will provide capacity-building initiatives aimed at enhancing risk management practices within the capital market ecosystem.
He therefore sought SEC’s support for initiatives like capacity building programs and obtaining a new office space, acknowledging the significance of professional risk managers in addressing market challenges.
“we’re also here to let him know that we’re willing to collaborate with him, and we will provide capacity building and any form of assistance they will need from the institute.
“It’s very, very important at this time that Nigeria is looking for investors across the globe. The commercial banks, they are capitalizing. So, we need foreign investors, also the amount of confidence is required.
“So, our risk management is very key to instilling confidence in the minds of investors. So, for us to be able to raise the required fund, for our industry investors need to have confidence in our capital market
“And one of the ways of getting that done is to ensure there’s effective risk management.” he said
He emphasized further that neglecting risk management could prove detrimental to businesses, potentially leading to risky decision-making and adverse outcomes. However, he expressed optimism that increased awareness and education would lead to broader adoption of risk management practices, even among Small and Medium-sized Enterprises (SMEs).
Oseni added that the Institute is actively championing legislative efforts to institutionalize risk management across all government ministries, departments, and agencies (MDAs). The proposed bill aims to mandate the establishment of dedicated risk management departments within MDAs, ensuring that risk considerations are integrated into decision-making processes at all levels of governance.
On his part, Agama assured the institute of the commission’s support and collaboration for the growth of the risk management profession.
He therefore stressed the need for effective risk management for managing volatility and speculative practices for economic stability and requested a formal documentation of requests for proper response stating their commitment to responding within 72 hours.
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