• Tuesday, June 25, 2024
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Risk managers urged to brace up for new normal in businesses post-Covid-19

Risk retention

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.

“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.