NAICOM boss urges data-driven risk management

The Commissioner for Insurance/Chief Executive Officer of the National Insurance Commission, Olusegun Omosehin, has called for the adoption of a proactive and data-driven approach to risk management.

Omosehin made this recommendation at the Risk Managers Society of Nigeria’s 40th-anniversary celebration in Lagos recently.

According to Harvard Business School, risk management is the systematic process of identifying, assessing, and mitigating threats or uncertainties that can affect your organisation. It involves analysing risks’ likelihood and impact, developing strategies to minimise harm and monitoring measures’ effectiveness.

PwC’s Global Risk Survey indicated that organisations that embrace strategic risk management are five times more likely to deliver stakeholder confidence and better business outcomes and two times more likely to expect faster revenue growth.

Speaking to the theme, ‘Risk Management in Nigeria – Evaluating the Impact and Relevance to National Development’, Omosehin said risk management is one of the cornerstones of sustainable development.

He said, “Our regulatory framework is focused on enhancing the capacity of insurers to underwrite risks while ensuring policyholders are protected. We are also working to expand insurance penetration, particularly among underserved communities, so that risk mitigation is inclusive and equitable.

“As we evaluate the impact of risk management on national development, we must embrace a proactive, data-driven, and forward-looking approach. Risk management should not be seen as a reactive measure but as a strategic tool embedded in governance, infrastructure planning, enterprise development, and public policy,” he said.

He maintained that in today’s interconnected world, the ability of public and private institutions to identify, assess, and respond to risks is central to national resilience and progress.

He added, “In Nigeria, we have witnessed how the lack of structured risk mitigation has hampered growth, from business disruptions to the socio-economic consequences of climate-related disasters, cyber threats, and public health emergencies.

“The insurance industry, under the regulatory oversight of the National Insurance Commission, plays a pivotal role in fostering a robust risk management culture in Nigeria. Through risk transfer mechanisms, insurance not only provides a financial safety net but also promotes stability, investment, and innovation.”

In the anniversary lecture delivered by the Executive Vice Chairman/Chief Executive Officer of Insurance Brokers of Nigeria Limited, Prosper Okpue called on risk managers to be ethical in their operations and implored the government to embrace risk management, stating that most national losses could have been prevented through a structured risk management structure.

Meanwhile, the new president of RIMSON, Dr. Abbas Idriss, pledged to build on the solid foundation laid by the founding fathers in taking the society to lofty heights.

He called for support to ensure the set goals and objectives of the society are fully achieved.