• Tuesday, May 21, 2024
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Why integrating risk management into governance is crucial – CRMI

Institute entrenches risk management for business, public sector survival

The Chartered Risk Management Institute (CRMI) has advocated for the integration of risk management principles into the governance framework of Nigeria’s three tiers of government.

Ezekiel Oseni, president/chairman of the council of CRMI, who made the advocacy, said this measure would serve as a protective shield for Nigeria’s economic stability and enhance its ability to attract both foreign and domestic investments.

Oseni spoke at the 22nd annual international risk conference organised by CRMI where stakeholders discussed the theme- “Embracing disruption: Navigation risk in an era of global transformation.”

Oseni said: “We are in a world where uncertainty and the level of volatility are unpredictable. There is a need for effective risk management in governance across the three tiers of government. This will assist in the efficient allocation and utilisation of limited economic resources across the sectors and projects.”

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“By embracing effective risk management practices, Nigeria can safeguard its economic stability, attract foreign and domestic investments, and foster sustainable growth across all its sectors. It will assist in identifying risk factors and provide necessary mitigations that will ensure the projects are effectively and time delivered.

“It would assist in boosting the credit ratings of the economy by rating agencies and international market analysts. I, therefore, call on government across all levels to introduce risk management functions in the MDAs and other arms of government.

“In addition, the government should call for a convocation of all key stakeholders including the various security agencies for the purpose of developing a national risk management framework for the economy.”

He also called on the private sector to embrace quality risk management not only for the sake of compliance but for the long-term sustainability of their organisations.

“We advise that they recruit from the pool of chartered risk management professionals of this Institute for a rewarding investment.”

He said that new disruptions were not unlikely and it was pertinent that businesses and governments be prepared for more disruptions arising from technological innovations, pandemic breakouts, climate issues, cybercrimes, artificial intelligence, blockchain, geopolitical issues and collapse of multinationals with global networks due to increasing challenging environments.

On his part, Olukayode Pitan, managing director, Bank of Industry (BOI) stressed the importance of embracing risk management practices. He said it was a vital step in addressing the challenge of reducing non-performing loans in BOI.

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He further encouraged stakeholders and participants to adapt and remain well-informed about both current and emerging risks that have the potential to disrupt organisations and beyond.

Pitan, who was represented by Simon Aranonu, the executive director, large enterprises, BOI, said: “In an environment where the sands are constantly shifting, public sectors have a critical role to play in serving their citizens in balancing the opportunities created by the disruption alongside the threats created by these opportunities.”