KPMG charges financial institutions on risk framework

KPMG

KPMG

KPMG Nigeria has stressed the need for companies and financial institutions to create an effective enterprise risk management structure and processes that would help mitigate against exposure to emerging risks that is capable of threatening institutional growth.

In a recent survey report conducted by the Risk Consulting practice of KPMG Nigeria between December 2015 and February 2016 which identifies the key risks likely to affect businesses in the manufacturing, energy and telecommunications sectors in 2016, noted that executive management currently face an unprecedented number of new and emerging risks that can threaten corporate strategy not proactively identified and properly managed.

Speaking at the launch of the survey in Lagos at the weekend, the Partner, Risk Consulting Services, KPMG, Tomi Adepoju, submitted that it has become imperative for organisation to carefully evaluate and put an effective enterprise-wide risk management structure and process in place to mitigate against exposures to these risks.

According to her, as businesses contend with increasing risk exposures, the report would enable companies compare their own risks with those of their peers.

She pointed out that the report also provides an empirical foundation with which results of subsequent risk surveys can be compared, to monitor trends and key changes in risk over time.

Adepoju added that the report is based on aggregated perspectives of over 70 executive directors and senior management staff, including chief risk officers and chief audit executives,

“The need for organisations to strengthen their risk management practices cannot be over-emphasized, as the results of the risk management survey show that the business environment in 2016 will be quite challenging for all sectors of the economy.

However, with the right risk management strategies, organisations stand a chance of transforming potentially crippling risks into a competitive advantage and sustaining their performance in spite of the prevailing changes in the operating environment.”

She added: “ If you have begun the risk management journey, it is essential to determine which aspects of your risk management process requires enhancements and take



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