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.
“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.
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