Effective enterprise risk management framework is a fundamental prerequisite for business success, a business consultant reiterated on Tuesday.
In Nigeria, there’s the risk of infrastructure challenges, change in government policies just to mention a few.
The CEO, Deon Consulting Services, Mr Tom Olumoya, who was the guest on ‘Business Morning’, said most businesses do not factor these risks into their planning and so ignore the possibility of being able to manage the situation and protect their investments.
According to him, developing an effective risk and compliance management framework helps an organisation to take advantage of business opportunities as well as increase their competitive strength.
He said this would go a long way in enlarging the coasts of business ventures and reduce the mortality rate of Small and Medium Enterprises, as it is an essential management tool for developing a strong business structure.
“If a business owner cannot properly analyse the risk, he can bring someone in to do it. But people do not want to pay, but their businesses end up paying for it,” he said.
According to him, forecasting political risks, social risk and other risks that are external, would help the business owner plan well.
“It is, however, important that before you can hire a risk manager, you must be sure to check out their background. Have they worked for any company before? They have to have a substantial resume before you can hire them to ensure that you do not bring them in, they zap your money and nothing different,” the consultant said.
