RISK MANAGEMENT AND ENTERPRISE RISK MANAGEMENT IN NIGERIA: IMPLICATIONS FOR NATIONAL DEVELOPMENT AND GROWTH

Abstract

This paper examines the implications of risk management and Enterprise Risk Management (ERM) on national development and growth in Nigeria. The paper adopts an historical research methodology in order to establish facts and arrive at conclusions. The findings revealed that enterprise risk management is an essential tool in tackling uncertainty associated with businesses in Nigeria. The benefits and advantages of implementing enterprise risk management (ERM) have direct positive implication on National Development of Nigeria in different ways. When resources, time, assets income, property and personnel of organizations are saved it help to improve the efficiency and enhance productivity of such organization thereby accelerating the rate of national development of the Nigerian economy. It was concluded that the understanding of ERM and International Standard Organisation Risk Management Model are necessary to facilitate widely adoption and implementation of ERM in business enterprises in Nigeria for sustained economic development. Recommendations were that there is need to adopt a holistic approach to managing risk by individuals, communities, organizations, government as well as international communities. ERM should start in the management boardroom in order to positively influence the way companies thought about risk, and planned for eventualities. It is also imperative that organisations must integrate risk management into the organisation’s philosophy, practices, and business plans; rather than being viewed or practiced as a separate programme. However, the international community should offer expertise, facilitate international policy coordination, and pool resources when risks exceed national capacity or cross national and generational boundaries. These systems have mutual interactions, often complementing and sometimes substituting for each other’s risk management functions.