Risk Management Association of Nigeria (RIMAN) and The Chartered Institute of Bankers of Nigeria (CIBN) have inducted certified risk managers who qualified in 2021, calling on corporates to embrace enterprise risk management for organisational efficiency. The Certified Risk Manager Certification (CRM) programme was designed in recognition of the importance of risk management and the need to build the capacity of risk management professionals to enable them effectively address current and emerging risk management issues, whilst giving special attention to local content.
The collaboration which started in 2015 has produced 116 certified risk managers (CRMs), 37 of which were inducted this year having fulfilled all the necessary requirements for Induction.
Speaking at the 5th CRM induction ceremony, with the theme “enterprise risk management and organisational efficiency”, Ken Opara, president/ chairman of council, CIBN, observed that this year marks the 7th year of the collaboration which has been very fruitful so far. He said that adoption of emerging technologies such as artificial intelligence, robotics, quantum computing, blockchain, cryptocurrency, internet of things (IoT), machine learning and cloud computing have all caused and continues to fuel disruptions in the ecosystem which have paved way for enhanced services and enabling organisations to reach broader customer base.
While the benefits of the adoption of these new technologies are undeniable, the new normal ushered in a new dimension of risks for both businesses and individuals using the technologies.
He said further that during the pandemic, banks and other businesses leveraged technological advancements, particularly digital channels to optimize operations. Remote working came to the fore and the digital platforms became the melting pot.
This new wave, according to Opara, led to heightened risks of cybersecurity issues such as data breaches/theft, phishing emails, and hacking/cyber-attacks, adding that in 2021 Accenture’s report, security attacks on businesses increased by 31 percent between 2020 and 2021.
The Cybersecurity Almanac, 2021 noted that the cost of cybercrimes will likely hit $10.5 trillion by the year 2025 while Identified fraud losses in 2021 totaled $56 billion (Javelin Strategy a Research, 2021). Furthermore, with the increase in adoption of social media platforms as significant means for communication with customers, there has been an increase in the risk of reputational damage as a result of malicious intrusions, hacking attempts, or staff negligence when handling social media accounts of organisations, he said.
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In his remarks, Ezekiel Oseni, president of RIMAN, said that the theme for this year’s induction was deliberately chosen in recognition of the fact that risk management is important in every business venture. Since the global financial crises and the COVID-19 pandemic, risk management has been more on the centre stage.
Organisations are more conscious of how to embed risk management in their structures. It is therefore imperative that to improve organisational efficiency, risk management has become an integral part of decision-making. He said that risk management objectives and organizational performance has, therefore, become an important process for organisations to survive. It is in line with this that today, organizations are expected to align their risk management objectives, risk approach, risk management framework, risk exposure impact, etc., to achieve excellent performance/ efficiency.
This according to Ezekiel Osen has become pertinent in view of the global business environment that has witnessed uncommon challenges. Organisations are managing through unpredictable and crisis-prone business environments with attendant risk ramifications. “The world needs the future risk managers now; the risk managers that are agile (able to adapt to changing environments), intelligent, analytical, practical, business-oriented, solution finder (not road blocker), knowledgeable, seeking new knowledge and always ahead of risks, resilient, closely involved with decision making and reporting directly to the Board of Directors. The level and intensity of change currently being experienced in corporate organisations are on the increase and with attendant upsurge in exposure to risk and to succeed in this ever-changing business environment, the risk manager of the future must be willing to explore new ideas and ways of solving problems quicker or by using fewer resources, he must be ahead of regulations, be on the wave of global best practice, be dynamic in approach and ensure that his organization is a top player”, he said.
The guest speaker at the occasion Eneni Oduwole, publicity secretary of RIMAN and CEO, Alter-Ed Limited, highlighted the congruence between enterprise risk management and organisational excellence under two broad categories namely the enablers and results. Enablers include: leadership, people, policy and strategy, process, partnership while results include: people result, customer result, society result, key performance results. “Enterprise risk management enables better management of uncertainties, associated risks and opportunities while ensuring enhancement of the organisation’s capacity to build value”, she said.