Risk management, tool for organisational survival

The President, Risk and Insurance Managers Society of Nigeria, Mrs. Effiom Ekaha, has identified risk management as a potent tool for organisational survival in turbulent times and during periods of economic downturn.In a statement by the company on the national conference of the society held in Ibadan, Oyo State, recently, Ekaha debunked the view that risk management was only relevant for addressing downside risks.Ekaha said, "Risk management is not only employed by proactive organisations to address downside risks of man-made and natural exposures, which are insurable alone, but also for addressing upside risks to take advantage of opportunities and benefits in business and investments.She added, "Today, more than ever before, risk management is generally recognised as a potent tool for survival in turbulent times and circumstances. Businesses are faced with myriads of operational risks, which, if not properly managed, could impair their survival and continuity."Stating the relevance of the theme of the RIMSON national conference, "Nigerias economic growth: Value creation during economic downturn," Ekaha said it was apt in view of the need to prepare professionals and policy makers for the eventuality of impending economic downturn that might affect the global economy and business growth.The statement quoted the Managing Director of Crusader Sterling Pensions Limited, Mr. Adeniyi Falade, to have lauded the Pensions Act, in view of its diverse advantages on the plight of workers.He stated that the scheme was still being confronted by problems, such as inadequate coverage of the informal sector of the economy, which constitutes more that 40 per cent of the nations workforce as well as the need to build capacity to address the wide knowledge gap.
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