Effective risk management foster economic growth – Institute

By Mashe Umaru Gwamna

Chartered Institute of Loan and Risk Management of Nigeria, said that effective risk management and corporate governance foster economic growth, stability and engenders national value creation.
The institute said effective risk management and corporate governance extend to individual companies; they have a profound impact on the economic stability and growth of a nation.
President of Executive Management and professional Centre, Toronto, Canada, Prof. Musediq Abdul, made this disclosure via a virtual address, at the 2023 Annual Risk Professionals International Conference recently in Abuja.
Speaking at the conference, Abdul said corporate governance forms the bedrock of ethical business operations, adding that this encompasses the principles and practices that guide how a company is managed and controlled.
“Effective corporate governance is intrinsically linked to risk management, as it establishes the structures and processes necessary to identify, assess, and mitigate risks.
He said risk management compliance is a fundamental aspect of responsible business operations. It is a critical component of sustainable and ethical practices in the corporate world.
“Compliance ensures that organisations operate within the boundaries of regulatory and industry standards, which safeguards organisation’s reputation.
He enumerated some global risks for businesses to include global inflation, US-China economic competition, resurgent of COVID-19 waves, grains supply chain difficulties occasioned by the Russian/Ukraine war among others.
The risk expert said all these had in one way or the other adversely affected some businesses.
“When risks, especially in businesses, were not properly managed by engaging professionals in the field, this could lead to poor reputation for the organisation and therefore the loss of investors or customer confidence.
According to him, this is a reputational risk management which can lead to folding up of businesses because of lack of patronage, thereby negatively impacting on economy.
He further said that corporate governance and risk management as well as national value creation bring about economic stability, regulatory framework enhancement and investor confidence.
Abdul added that it also promotes innovation and entrepreneurship which encourage businesses to take calculated risks fostering growth.
Strong leadership is critical to ensuring organisational resilience and the role of risk professionals in fostering economic growth and stability is significant and multifaceted.
He therefore urged government to engage professional risk managers who have the skills and knowledge to build resilient and viable national economy.
In her welcome address, Dr Harriet Akubuiro, Chairman of the Governing Council of the Institute, said the institution wants citizens to be conscious of the existence of risks in everyday life.
“There are risks in every area of life; risk management is tied to everything you want to do; it’s not like other professions where risk management is always a click away from every information you need to stay ahead.
“Nigerians make good policies without making risk management strategies; we need risk management compliance in Nigeria, we need proper corporate governance.”