Kreston Pedabo Pushes for Stronger Risk Management as Businesses Face Economic and Cyber Threats

Folalumi Alaran in Abuja

Amid growing economic instability, regulatory uncertainties, and rising cyber threats, Kreston Pedabo has urged Nigerian businesses to prioritize enterprise risk management (ERM) to safeguard their operations and drive sustainable growth. The professional services firm warned that weak risk frameworks are leaving many companies exposed to financial losses, legal troubles, and operational setbacks.

Speaking on the urgent need for businesses to adopt structured risk strategies, Nosa Ogebebor, a Partner at Kreston Pedabo, noted that many organizations continue to treat ERM as a regulatory burden rather than a strategic tool. He cautioned that a reactive approach to risk management—where businesses only act after crises hit—is no longer sustainable in Nigeria’s increasingly volatile business landscape.

To address these concerns, Kreston Pedabo is set to host a high-level industry seminar in Lagos, themed “Strengthening Business Resilience: Integrating Enterprise Risk Management for Sustainable Growth.” The event will bring together top regulators, industry leaders, and governance experts to chart a path toward a risk-conscious corporate culture in Nigeria. Among the key speakers are Dr. Bola Ajomale, Executive Commissioner for Operations at the Securities and Exchange Commission (SEC) Nigeria, and Dr. Joseph Atatisi, Academic Director at Wake Forest University and Senior Regulator at the SEC in the U.S.A.

Ogebebor emphasized that Nigeria’s unstable economic environment—marked by foreign exchange fluctuations, inflation, and inconsistent government policies—demands that businesses become more proactive in identifying and mitigating risks. He pointed out that while large corporations and financial institutions must comply with regulatory mandates from agencies like the Central Bank of Nigeria (CBN), SEC, and the National Insurance Commission (NAICOM), many small and medium-sized enterprises (SMEs) remain unprepared due to a lack of awareness and expertise.

Beyond regulatory challenges, Ogebebor highlighted cybersecurity threats as one of the most pressing risks businesses face today. With the rapid expansion of digital banking, fintech services, and e-commerce, he noted that cyber risks are growing exponentially. However, many Nigerian companies still lack the necessary safeguards to protect themselves from cyberattacks, data breaches, and fraud.

While some industries have made progress in risk governance, Ogebebor observed that compliance remains inconsistent across sectors. He pointed out that Nigeria’s past placement on the Financial Action Task Force (FATF) grey list—due to weak anti-money laundering and counter-terrorism financing measures—was partly a result of gaps in risk management and regulatory oversight.

To address these risks and strengthen investor confidence, he urged businesses to align with global ERM standards, such as the COSO ERM Framework, ISO 31000, and FATF recommendations. He explained that companies with robust risk management frameworks are not only better protected but also more attractive to international investors and business partners.

Ogebebor stressed that businesses must move beyond a compliance-based mindset and embrace ERM as a tool for strategic decision-making. He noted that those who integrate risk management into their corporate culture and operational frameworks will be better positioned to withstand economic shocks and remain competitive in an increasingly complex market.

The upcoming seminar, according to Ogebebor, is a critical platform for Nigerian businesses to gain insights, practical solutions, and expert guidance on how to navigate risk effectively. He encouraged corporate executives, finance professionals, and risk management experts to seize the opportunity to shift from reactive risk management to proactive risk planning.

“This is not just about checking regulatory boxes; risk management is a business survival strategy. Companies that fail to take it seriously will find it increasingly difficult to thrive in today’s unpredictable environment,” Ogebebor said.