Policy Instability, weak risk culture threaten business resilience – Experts

Experts at a high-level risk management seminar hosted by Kreston Pedabo have warned that weak organisational risk cultures and policy instability are undermining business resilience in Nigeria, calling for urgent reforms in how companies and regulators approach risk. The event, themed “Spreading Business Resilience: Integrating Enterprise Risk Management for Sustainable Growth,” gathered regulators, risk professionals, […]

Experts at a high-level risk management seminar hosted by Kreston Pedabo have warned that weak organisational risk cultures and policy instability are undermining business resilience in Nigeria, calling for urgent reforms in how companies and regulators approach risk.

The event, themed “Spreading Business Resilience: Integrating Enterprise Risk Management for Sustainable Growth,” gathered regulators, risk professionals, and business leaders to discuss the importance of Enterprise Risk Management (ERM) in sustaining corporate growth amid economic and geopolitical uncertainties.

Despite increased awareness, panellists said many Nigerian companies continue to treat ERM as a compliance formality rather than a strategic framework for navigating volatility. They emphasised that without deeper integration of risk into decision-making and culture, organisations will remain vulnerable to shocks.

“Many companies have frameworks, but risk isn’t embedded in strategic or operational processes,” said Olanike Olakanle, Head of Audit, Risk & Internal Control at Lafarge Africa Plc. “ERM must evolve from documents to discipline — supported by data, AI, and a strong governance mindset.”

Echoing similar concerns, Executive Director at Ecobank Nigeria Limited, Biyi Olagbami, warned that erratic regulatory changes are eroding investor and business confidence. “We can’t keep shifting rules without assessing long-term impacts. Risk management needs to be built into strategy from the start, not applied after damage is done,” he said.

Dr. Joseph Atatsi, Academic Director at Wake Forest University and Senior Regulator with the U.S. SEC, stressed that Nigeria must begin to anticipate and respond to global risk trends. “From cybersecurity to ESG and climate disruption, the risk landscape is changing fast. Organisations must strengthen internal systems and capacity if they want to survive,” he said.

Managing Partner at Kreston Pedabo, Ajibade Fashina, said too many firms still misunderstand the role of ERM. “This is no longer just about compliance. Risk is a business enabler. The companies that will thrive are those that embrace risk as a tool for innovation and long-term value,” he noted.

Fashina added that the 2025 seminar was part of the firm’s broader commitment to supporting sustainability and accountability in Nigeria’s business environment.

Head of Enterprise Risk Management at Seplat Energy Plc, Abiola Ogunleye, advised businesses to tailor risk strategies to their specific sectors and ensure enterprise-wide adoption. “ERM must be consistent and scalable. It needs to be visible at all levels, from the boardroom to front-line operations,” he said.

The experts called on businesses and regulators to work together to create a more stable operating environment, backed by data, foresight, and long-term planning.

They also urged greater investment in people, tools, and processes to deepen risk maturity across Nigeria’s corporate landscape.

The consensus from the seminar was clear: until ERM becomes a strategic cornerstone in both public and private institutions, Nigeria’s ambition for sustainable growth will remain elusive.