Risk managers urged to brace up for new normal in businesses post-Covid-19

Risk managers have been advised to brace up for the new normal in businesses post-Covid-19 lockdown, which comes with opportunities and challenges.

Covid-19 has affected the global economy with its impact on Nigeria as well as other African countries.

In response to the effects of COVID-19 on the economy, private and public companies as well as regulators are implementing procedures and plans to ensure survival during this pandemic.

Risk Managers Association of Nigeria (RIMAN) in collaboration with EY held a webinar on ‘COVID-19: Risk Management Business Resilience’ on Tuesday.

Folakemi Fatogbe, Chairman, BOT, RIMAN, director, risk management, Central Bank of Nigeria (CBN), said risks managers should look at IFRS 9, which set a framework for determining credit risks.

She listed sectors of the economy with high risk to include tourism, aviation, hospitality and retail sectors.

The ones that are likely to do well she said are healthcare, telecommunications, commerce and media. “We have to consider capital availability,” Fatogbe said.

Magnus Nnoka, president, RIMAN, chief risk officer, Coronation Merchant Bank, noted that risk managers are involved in designing risk strategies and urged them to reassess their risk management, risk strategies and business models at this time.

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“There is going to be new normal that will come with its risks,” Nnoka said, stressing that some businesses are going to die, some will survive while some will merge post Covid-19.

Jude Monye, executive director, enterprise risk management, Heritage Bank, admitted that application of technology and data analytics are key factors for any business.

He said risk managers should drive the new business model, adding that a lot of scenario planning is going to come on board.

Employees’ loyalty, trust and relationships are important at this time said Monye, who also said there has to be a Board that is very agile and resilient.

Ben Afudego, partner, West Africa Advisory Lead, EY, advised risk managers to Review the risk appetite framework and operational resilience capabilities in light of lessons learned from the Covid-19 disruption.

He emphasized the use of new technologies and data analytics to put in place early warnings trigger to manage potential future disruptions.

“Update risk models based on new realities and contribute to the design of new products with consideration for emerging risks,” Afudego told risk managers, saying also that they should provide risk and control oversight on post-lockdown programmes to support transition to business as-usual focusing on workforce, location, operations and business strategies.

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.