By Perpetua Onuegbu
Mr Adeshola Amoo, Head, Director of Auditing Practice Standards, Financial Reporting Council of Nigeria (FRCN), says that risk management has become critical to mitigate potential threat to business organisations and capitalise on opportunities.
Amoo said this while delivering a paper at the 2023 Annual Risk Management Professionals International Conference, organised by the Chartered Institute of Loan and Risk Management on Sunday in Abuja.
The theme of the conference is “Risk Management Compliance, Corporate Governance and National Value Creation”.
Amoo, a risk management expert, said with the dynamic and ever-changing business landscape, corporate unpredictability has become a significant challenge for organisations.
He indicated “Factors such as economic volatility, regulatory changes, technological advancements, and global events have heightened the level of uncertainty that businesses face,” saying that “in response to this unpredictability, embedding risk management techniques has become a critical strategy for organisations to effectively navigate and mitigate potential threats and capitalise on opportunities.
“Enhancing the ability to anticipate and respond to unpredictable events is critical to the success of any organisation,” he said.
The expert said “Some key strategies that can help organisations improve their ability to anticipate and respond to unpredictable events include to develop a Risk Management Framework and Conduct Scenario Planning.”
Amoo said to foster a culture of Risk Awareness, the use data analysis that could help organisations identify patterns and trends that might indicate emerging risks was key.
He also said businesses should develop a Crisis Management Plan, which should be regularly reviewed and updated to ensure its effectiveness.
“Monitor External Factors such as changes in regulations, technological advancements, and geopolitical events among others,” he advised.
“Collaboration with stakeholders, such as customers, suppliers and regulators, can provide valuable insights into potential risks and help organisations develop effective risk management strategies,” he said.
He further said integrating risk management into the fabric of an organisation helps to foster a culture of risk awareness and accountability, and develops robust risk management frameworks and processes.
The expert added that organisations can proactively address unpredictability and enhance their resilience in today’s dynamic business environment by engaging risk management professionals.
On his part, Associate Prof. Muhktar Saidu, Chairman, 2023 Conference, said the institute’s objective was to aid individuals, corporate organisations and governments to identify risks inherent in their activities with a view to providing an effective strategy to mitigate it.
“The main objective of risk management is to mitigate the uncertainties that are likely going to manifest in a drive by an organisation or individual to achieve set objectives,” Saidu said.
“This will ensure increase in productivity, which will later translate into a greater GDP which will, in essence, ensure growth and as the growth is sustained then that particular economy will now experience what is referred to as development,” Saidu said.
Speaking on ‘Accepting a Wrong Opportunity is as Risky as Refusing a Good Opportunity’, Dr Olusoji George, also a risk management expert, said the symbiotic relationship between effective risk management, compliance and national value creation was paramount for sustainable economic growth and development.
“These interconnected principles not only foster stability and confidence within financial markets but also drive innovation, job creation, and resource allocation efficiency, all contributing to the overall progress and prosperity of a nation.
The conference has in attendance over 250 risk professionals from across Nigeria and beyond.
It featured panel and round-table discussions with sub-themes of Risk Management, Panacea to Corporate Unpredictability.
The News Agency of Nigeria (NAN) reports that the institute was established over two decades ago to fill the void in the specialist professional discipline of risk management practice in Nigeria and boasts of over 100,000 members globally with 30 state chapters in Nigeria. (NAN)