The Managing Director of Intergrated Cash Management Services Limited, Leon Jacobs, has called on government and companies to embrace a robust risk management strategy.
Jacobs, who stated this in a paper he delivered at this year’s Risk Management Conference and Awards in Lagos, titled, ‘Risk Management and Changing Global Paradigms,’ said this was imperative given the challenging environment we now live in.
“We are living in a challenging new reality for governments and companies of all sizes around the world. There are many emerging influences that are creating opportunity, but at the same time, creating risks that need to be managed. As the risk landscape for commerce evolves, businesses can no longer rely solely on traditional risk mitigation or risk transfer tactics. They must take a cross-functional approach to risk management and explore different ways to cope with these new complexities.”
He listed such risks to include cybercrime, business interuption, damage to reputation, regulatory and legislative changes, economic slowdown, political risks and uncertainties.
Jacobs said we are living in a challenging new reality for governments and companies of all sizes around the world, stating that there are many emerging influences that are creating opportunities, which at the same time, create risks that need to be managed.
Speaking on how government and companies can prepare themselves for the risk and opportunities inherent in these changes, he said continuous professional education in risk management should be made readily available for risk managers in Nigeria.
He said: “We are a nation that is constantly exposed to a myriad of risks, which are becoming very sophisticated by the day. This will equally require sophisticated risk mitigation efforts. Given these complexities within a nation already plagued by lack of talent, the importance of a robust risk management discipline to enable sustainable business growth has never been more critical.
People cannot manage what they do not know. For those who know, continuous professional education in risk management should be made readily available for risk managers in Nigeria.
“The Center for Risk Management Development (CRMD), which is the educational arm of RIMSON, should pioneer the development of a corporate risk modeling tool to help corporates and even governments better understand the potential impact of extreme events such as natural catastrophes, disease outbreaks and political unrest.
“It is hoped that CRMD will take on this challenge and produce the first indigenous risk modeling solution for Nigeria, which should make it possible to identify which extreme and catastrophic events are most relevant for a given organisation in terms of impact and likelihood, which would assist management in risk mitigation decisions and provide a more quantitative approach to risk disclosure.”
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