By Obinna Chima
KPMG, one of the leading big four professional services firms, has released its biennial risk management survey report titled: “Top 10 Business Risks in Nigeria for 2020/202.”
The report was 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 unveiled at the weekend, provided a holistic look at key risks that executives believed would impact organisations in Nigeria, in the coming year and highlighted the impact of the coronavirus pandemic on the country’s macroeconomic outlook and risks prioritised by the survey respondents.
Risk Consulting Partner, KPMG, Tomi Adepoju, explained that, “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 explained that prior to the COVID-19 pandemic, the highest concerns for Nigerian executives across industries were the regulatory, fiscal and monetary policy, as well as foreign exchange volatility risks.
This, she said maintained their place at top three from the 2018 ranking by the firm. “However, one cannot help but acknowledge the COVID-19 and its impact on Nigerian corporates and the global business climate at large,” she added.
According to her, between 2020/2021, the outlook of the Nigerian economy would 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 United States presidential elections, and BREXIT.
Also, Partner and Head, Risk Consulting Services, KPMG Nigeria, Olumide Olayinka, stated that, “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.
“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.”