Risk management is a critical function in any organisation, particularly in an environment as dynamic and unpredictable as Nigeria. The life of a risk management professional in Nigeria is influenced by the country’s unique economic, political, and regulatory landscape. These professionals play a crucial role in assisting businesses and institutions to identify, assess, mitigate, and monitor risks that could obstruct their objectives.
Daily Responsibilities and Core Competencies
A risk management professional’s typical day involves evaluating operational, financial, strategic, and compliance risks. In Nigeria, this entails monitoring risks associated with currency fluctuations, inflation, regulatory changes, political instability, and cyber threats. They establish risk frameworks, conduct risk assessments, lead audits, and ensure that controls are implemented and adhered to.Â
Professionals such as Dr. Joachim Adenusi, a renowned Nigerian risk expert and founder of Conrad Clark Nigeria, emphasise the importance of fostering risk-aware cultures within organisations. According to him, risk management should be proactive rather than reactive and integrated into every business’s strategy.
Industry-Specific Roles
Risk professionals work across various sectors in Nigeria, including banking, insurance, oil and gas, manufacturing, and even education. In the financial industry, they ensure compliance with the Central Bank of Nigeria’s (CBN) risk-based supervision guidelines. Oil and gas companies manage environmental, health, and safety risks. Each sector requires a unique approach to risk, making the profession challenging and intellectually stimulating.
For example, Yinka Sanni, the former CEO of Stanbic IBTC, emphasised during his tenure that risk management was essential for driving sustainable banking operations, particularly in Nigeria’s volatile economic climate. Risk professionals within his organisation were heavily involved in stress testing, scenario analysis, and regulatory reporting.Â
Challenges Faced in Nigeria
Risk managers in Nigeria frequently encounter challenges such as poor data quality, limited awareness of the significance of risk management at executive levels, and a lack of technological infrastructure. The high rate of corruption and inconsistent regulatory enforcement further complicate their efforts. Despite these obstacles, numerous professionals have devised innovative strategies to navigate the system.
For instance, professionals in firms such as PwC Nigeria and KPMG Nigeria have played a crucial role in advising clients on enterprise risk management and in developing internal control systems that conform to international standards.
Professional Development and Recognition
To succeed in this field, many Nigerian risk managers pursue certifications like Certified Risk Manager (CRM) and Financial Risk Manager (FRM) and membership with the Risk Management Association of Nigeria (RIMAN). RIMAN is an important body that promotes awareness, education, and best practices in risk management in Nigeria. It hosts annual conferences, publishes journals, and provides a platform for networking and advocacy.International programmes like the ones offered at the Commonwealth Institute of Professional and Advanced Studies are also valuable for those who want a global edge.
Conclusion
The life of a risk management professional in Nigeria is both demanding and rewarding. These individuals are essential in assisting businesses to survive and thrive amid uncertainty. As Nigeria grows and diversifies its economy, the demand for skilled risk professionals will only increase. Their expertise not only safeguards businesses but also contributes to national development by promoting good governance and sustainable practices.
About the Author
Adebayo Adeyemo studied Strategic Insights for Internal Auditors Certificate at CIAPS, and he is currently an Auditor with a leading international group in Nigeria.