Operators have been urged to develop and implement a robust enterprise risk management framework that covers business continuity and disaster recovery planning.
This is expected to help reduce the effect of the recent happenings in the global arena on businesses. Moreso, businesses that already have a framework in place should seek periodic independent assurance on its effectiveness.
In its biennial Risk Management survey report (‘the report’) titled ‘Top 10 Business Risks in Nigeria for 2020/2021, KPMG Professional Services stressed the need for business managers to develop and implement a robust enterprise risk management framework that covers business continuity and disaster recovery planning.
The report also indicated that those that have a framework in place should seek periodic independent assurance on its effectiveness considering recent happenings across the globe.
Furthermore, the report showed that the outlook of the Nigerian economy 2020/2021 will rely on possible eventualities surrounding several global issues such as the COVID-19, the ongoing crude oil price war, the balance of demand and supply conditions, the US presidential elections, and BREXIT.
It is based on aggregate perspectives of 108 executives including Managing Directors, Chief Financial Officers, Chief Risk Officers, Chief Audit Executives and Chief Compliance Officers cut across various sectors of the economy.
The report offers a holistic look at key risks that Executives believe will impact organisations in Nigeria, in the coming year and highlights the impact of the coronavirus pandemic on the country’s macro-economic outlook and risks prioritised by the survey respondents.
Specifically, the Risk Consulting Partner, KPMG, Tomi Adepoju said 31 risks were assessed by C-Suite Officers; five of which were rated high, 25 as medium and one as low.
“The risk assessment had an aggregate score of 3.17, which depicts a medium risk environment for Nigerian businesses in 2020, based on our rating methodology.
“This represents an upward shift in respondents’ aggregate risk score from our 2018/19 report.” She continued, “Prior to COVID-19, the highest concerns for Nigerian Executives across industries were the regulatory, fiscal & monetary policy, and foreign exchange volatility risks, which maintain their place at top 3 from our 2018 ranking.
“However, one cannot help but acknowledge the COVID-19 and its impact on Nigerian corporates and the global business climate at large.” Partner and Head, Risk Consulting Services, KPMG Nigeria, Olumide Olayinka said: “Considering recent happenings, we urge businesses to develop and implement a robust enterprise risk management framework that covers business continuity and disaster recovery planning, and businesses that have a framework in place should seek periodic independent assurance on its effectiveness.
He added: “All organisations are encouraged to refer to KPMG’s weekly business impact series on COVID-19 for more information on topical issues arising from the pandemic and suggestions on how to manage them.”